Citaglobal to buy 1.6-acre land in KL for RM73 mil

• The energy and construction outfit said it sees the purchase as a strategic opportunity for long-term value creation and growth, citing the increasing scarcity of sizeable and well-positioned commercial land in the city.

KUALA LUMPUR (Jan 31): Citaglobal Bhd (KL:CITAGLB) signed a deal on Friday to buy a 1.58-acre land at Jalan Tun Razak from Bank Islam Malaysia Bhd (KL:BIMB), for RM73 million.

The energy and construction outfit said it sees the purchase as a strategic opportunity for long-term value creation and growth, citing the increasing scarcity of sizeable and well-positioned commercial land in the city.

“The land’s strategic location, high visibility, and excellent accessibility — fronting the main road of Jalan Tun Razak — along with its strong connectivity to public transport infrastructure, make it a highly desirable address in Kuala Lumpur,” it added in a bourse filing.

Prominent landmarks in the vicinity include Prince Court Medical Centre, Hospital Kuala Lumpur, and the National Heart Institute, as well as the Double Tree by Hilton hotel.

Citaglobal said the land has been tenanted by TJM Sdn Bhd since August 2019. Details of the tenancy were not disclosed.

The group said the purchase consideration, which is to be funded via internally generated funds and borrowings, was arrived at in consideration of valuations conducted by Citaglobal-appointed independent market valuer Intra Harta Consultants Sdn Bhd and Bank Islam-appointed CBRE | WTW.

However, the valuations were not disclosed in the filing.

Shares in Citaglobal ended one sen or 1.19% higher at 85 sen, valuing the group at RM361.65 million.

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