Sime Darby Property signs SPA to buy Wisma Unirazak for RM160m

PETALING JAYA (Aug 19): Sime Darby Property Bhd has signed a sale and purchase agreement (SPA) with Permodalan Nasional Bhd (PNB) to acquire Wisma Unirazak along Jalan Tun Razak, Kuala Lumpur, for RM160 million.

In a Bursa Malaysia announcement on Wednesday (Aug 19), the property developer said its wholly owned subsidiary Sime Darby Property (KLGCC Resort) Sdn Bhd entered into the SPA with PNB on the same day, following its acceptance of a binding letter of offer for the acquisition on July 6.

Sime Darby Property previously said it plans to redevelop the site into a high-rise serviced apartment development with supporting commercial components targeting the premium residential segment. The proposed development has an estimated gross development value (GDV) of RM900 million and is targeted for launch in 2028, subject to approvals, with completion expected within five years of launch.

The property comprises a 15-storey office building with one level of basement car park on 5,922.4 sq m (1.46 acres) of freehold land held under Geran 2976, Lot 229 Seksyen 43, Bandar Kuala Lumpur, Federal Territory of Kuala Lumpur.

It bears the postal address 195A, Bangunan MIDF, Jalan Tun Razak, 50400 Kuala Lumpur, and is located about 1km from Kuala Lumpur City Centre, near the Ampang Park LRT and MRT interchange, KLCC and Tun Razak Exchange.

According to Sime Darby Property's July 6 filing, the approximately 47-year-old building has a net lettable area of 110,669 sq ft and was fully occupied, with Universiti Tun Abdul Razak (Unirazak) occupying about 92,959 sq ft, or 84% of the total leased area.

The property generated annual gross property income of RM6.5 million as at Dec 31, 2025. Under the terms disclosed in July, Sime Darby Property would be entitled to rental income from the relevant existing tenancies and leases following completion of the acquisition, with the tenancies and leases required to end by Oct 31, 2027.

The RM160 million purchase consideration was arrived at on a willing-buyer willing-seller basis after taking into account an independent valuation of RM165.75 million as at March 17, 2026 by Raine & Horne International Zaki + Partners Sdn Bhd using the comparison method.

PNB acquired Wisma Unirazak in December 2009. Its total cost of investment in the property stood at RM51.89 million, including RM10.9 million of subsequent investments made up to June 30, 2026, while its audited net book value was RM39.97 million as at Dec 31, 2025.

The acquisition is a related party transaction as PNB is a person connected with Amanahraya Trustees Bhd-Amanah Saham Bumiputera (ART-ASB), which held a 32.70% stake in Sime Darby Property as at June 30, 2026.

The July 6 filing said the acquisition was subject to approval from the Ministry of Economy or the procurement of a letter of no objection, and was expected to be completed in the fourth quarter of 2026.

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