Sentral REIT to buy UEM Sunrise’s Mont’Kiara retail assets for RM70m

• The assets are currently fully tenanted with a mix of food and beverages (F&B), lifestyle, health and educational tenants, many of which are under a sales turnover rental model.

KUALA LUMPUR (May 27): Sentral REIT (KL:SENTRAL) is acquiring 38 stratified retail units and 1,432 parking bays in the Arcoris Plaza Development in Mont’Kiara, Kuala Lumpur, from UEM Sunrise Bhd (KL:UEMS), for RM70 million cash.

In a filing on Tuesday, Sentral REIT said its trustee, Maybank Trustees Bhd, has signed a sale and purchase agreement (SPA) with Arcoris Sdn Bhd and Sun Victory Sdn Bhd, both wholly-owned subsidiaries of UEM Sunrise, for the purchase.

Sentral REIT, in which Malaysian Resources Corp Bhd (KL:MRCB) owns a 27.94% stake, said that the assets are situated less than 500 metres from the property developer’s existing Plaza Mont Kiara (PMK), providing potential operational synergies and tenant mix flexibility.

“The combined retail offerings of PMK and the property will augur well with Sentral REIT’s objective to serve the office population and the surrounding residential developments,” it said.

The assets are currently fully tenanted with a mix of food and beverages (F&B), lifestyle, health and educational tenants, many of which are under a sales turnover rental model, according to Sentral REIT.

“The proposed acquisition is expected to contribute positively to the earnings of Sentral REIT for the financial year ending Dec 31, 2025,” the company said, as it expected the acquisition to be completed in the fourth quarter of 2025.

Sentral REIT said the purchase will be funded by bank borrowings, with the company’s gearing ratio expected to rise from 44.6% to 46.1%.

As of end-March 2025, Sentral REIT’s cash and cash equivalents stood at RM24.98 million, while its long-term borrowings totalled RM1.17 billion.

Shares of Sentral REIT closed half a sen or 0.66% lower at 75.5 sen on Tuesday, valuing the group at RM902.6 million.

Want to have a more personalised and easier house hunting experience? Get the EdgeProp Malaysia App now.