Sime Darby Property buys Wisma Unirazak for RM160 mil, plans mixed-use project

PETALING JAYA (July 6): Sime Darby Property Bhd (SD Property) has accepted a binding letter of offer to acquire Wisma Unirazak, a freehold 15-storey office building with one level of basement carpark along Jalan Tun Razak in Kuala Lumpur, for RM160 million.

Related-party transaction and asset details

In a filing with Bursa Malaysia today, the group said the offer was issued by Permodalan Nasional Bhd (PNB), with the asset to be acquired via Sime Darby Property (KLGCC Resort) Sdn Bhd, a wholly-owned subsidiary. SD Property said the transaction is a related party deal under Paragraph 10.08 of Bursa Malaysia’s Main Market Listing Requirements, as PNB is a person connected to Amanahraya Trustees Bhd – Amanah Saham Bumiputera, a major shareholder of the company.

The property, which is about 47 years old, sits on a freehold parcel measuring 5,922.4 sq m in Bandar Kuala Lumpur. Wisma Unirazak has a net lettable area of 110,669 sq ft and was fully occupied as at Dec 31, 2025, with Universiti Tun Abdul Razak (Unirazak) as the principal tenant, occupying about 92,959 sq ft or roughly 84% of the leased area. The filing said total annual gross property income as at Dec 31, 2025 was RM6.5 million.

Tenancy, valuation and pricing

Following completion of the proposed acquisition, SD Property said the purchaser will be entitled to rental income from subsisting tenancies and leases until Oct 31, 2027. All tenancies and leases are required to be terminated or not extend beyond that date so that vacant possession can be delivered for redevelopment.

PNB acquired Wisma Unirazak in December 2009 at an original cost of RM51.89 million and subsequently invested RM10.9 million in the property up to June 30, 2026. The audited net book value of the property as at Dec 31, 2025 was RM39.97 million. An independent valuation dated March 17, 2026 by Raine & Horne International Zaki + Partners Sdn Bhd assessed the property at RM165.75 million using the comparison method, compared with the RM160 million purchase consideration.

Key commercial terms of the offer

Under the letter of offer, the RM160 million consideration will be satisfied in cash and is to be paid on a willing-buyer, willing-seller and “as is, where is” basis, free from encumbrances and subject to title conditions, covenants, easements and the eventual sale and purchase agreement (SPA). A total deposit of RM16 million (10%) is payable, comprising an earnest deposit of RM3.2 million (2%) within seven days from acceptance of the offer, and a further RM12.8 million (8%) upon execution of the SPA. The balance RM144 million (90%) is to be paid within three months from the date the SPA becomes unconditional, with an automatic one-month extension subject to late payment interest of 8% per annum calculated daily.

The SPA is to be executed within 30 working days from acceptance of the letter of offer, or on a later date as may be mutually agreed. It will be conditional, among others, on approval or a letter of no objection from the Ministry of Economy for the acquisition, and on the novation or termination of existing tenancies and leases so that no rights extend beyond Oct 31, 2027 and vacant possession can be delivered by then.

SD Property said the purchase consideration was determined on a willing-buyer, willing-seller basis after taking into account the independent valuation of RM165.75 million and benchmarking against four comparable land transactions in the surrounding area.

Redevelopment plan and GDV

Wisma Unirazak is situated within the Jalan Tun Razak/Kuala Lumpur City Centre corridor, about 1km from KLCC and near the Ampang Park LRT/MRT interchange. SD Property said the property is proposed to be redeveloped into a high-rise serviced apartment development with supporting commercial components targeting the premium residential segment, with an estimated gross development value (GDV) of about RM900 million. Subject to securing approvals for the development plans, the proposed project is targeted to be launched in 2028 and completed within five years of launch. Development cost and funding mix will be determined later once detailed plans are finalised.

Funding, financial effects and board opinion

The group said the acquisition forms part of its SHIFT32 transformation strategy. The board said the proposed development is expected to contribute positively to the group’s future earnings and long-term growth.

SD Property said the purchase consideration will be funded via a combination of internally generated funds and borrowings, with the exact breakdown to be decided later. The proposed acquisition is not expected to have any material effect on the group’s earnings, earnings per share, net assets or net assets per share for the financial year ending Dec 31, 2026, although gearing is expected to increase due to borrowings.

The audit committee, after reviewing the rationale, benefits, effects, pricing and prospects of the property, said it is of the opinion that the proposed acquisition is in the best interest of the company, fair and reasonable, on normal commercial terms and not detrimental to the interests of minority shareholders. The board, excluding the interested directors, said it was of the opinion that the proposed acquisition is in the best interest of the company.

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