ARREIT to acquire Kompleks PKNS, Menara PKNS and SACC Mall for RM270m

KUALA LUMPUR: Amanahraya Real Estate Investment Trust (ARREIT) has proposed to acquire Kompleks PKNS, Menara PKNS and SACC Mall in Petaling, Selangor, for a total of RM270 million, it announced on Bursa Malaysia on Thursday, Sept 2.

ARREITS trustee CIMB Trustee Bhd (CTB) had entered into a conditional sale and purchase agreement (SPA) with Perbadanan Kemajuan Negeri Selangor (PKNS) to acquire the properties.

The sales consideration, which is subject to revision, is to be satisfied partly by RM162 million in cash and partly by the issuance of 122.72 million new units at an issue price of 88 sen per unit.

Kompleks PKNS is a four-storey retail/office complex with a basement level carpark with a gross floor area (GFA) of about 821,033 sq ft.

The occupancy rates for the office and retail blocks are 100% and 94%.

The land area is about 7.47 acres. It has a net book value of RM39.38 million based on PKNS’s audited consolidated financial statements for the financial year ended Dec 31, 2009.

SACC Mall is a five-storey retail complex with a basement level containing a GFA of 551,448 sq ft. It has a land area of about 5.7 acres.

The five-year-old retail complex has a net book value of RM89.15 million, and as at Feb 23 was 96% occupied.

Menara PKNS is a 20-storey purpose-built free-standing office building, with two mezzanine floors and a basement car park.

The building has a GFA of about 627,678 sq ft and a net lettable area (NLA) of about 244,316 square feet.

The net book value is estimated to be at RM61.55 million.

“The recent lettings within Menara PKNS range between RM3.30 and RM3.75 psf per month for the upper floors and RM3.75 psf per month for the mezzanine floor,” it said.

Today, CTB had also entered into three separate license agreements with PKNS wherein CTB has agreed to lease the properties to PKNS for a term of 12 years from the completion of the proposed SPA at an agreed set-up rental in every three years.

In addition, ARREIT’s fund manager Maybank Investment Bank Bhd (Maybank IB) has also proposed increase the approved fund size to 695.94 million units from 573.22 million units.

The purchase price was arrived at on a willing-buyer willing-seller basis at the market value of RM270,000,000 as appraised by Rahim & Co Chartered Surveyors Sdn Bhd.

In its valuation report dated Aug 2, the market value of Kompleks PKNS, SACC Mall and Menara PKNS was at RM89 million, RM90 million and RM91 million respectively, using the investment method and comparison method.

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