Genting Malaysia acquires Wisma Genting and two adjoining parcels of land in Segambut

KUALA LUMPUR: Genting Malaysia Bhd on Dec 8 entered into sale and purchase agreements with Genting Bhd to acquire Oakwood Sdn Bhd and Genting Highlands Tours and Promotions Sdn Bhd (GHTP) for a cash consideration of RM212.7 million and RM15.9 million respectively.

Oakwood Sdn Bhd owns a parcel of freehold building land in Kuala Lumpur, known as Wisma Genting – a 24-storey office building, 1-storey shop, 1-storey machine plant room, 1-storey banking hall and five levels of basement carpark. GHTP owns two adjoining parcels of development land, known as Segambut Land, which houses a workshop, office and storage spaces.

In its statement to Bursa, Genting Malaysia Bhd says the acquisition of Wisma Genting, where it is the largest single tenant, will reduce its annual rental expenses at the consolidated level. Genting Malaysia presently occupies eight floors and two basement levels with a total annual rental of approximately RM3 million. It expects to earn an annual rental income of approximately RM17.3 million from the other tenants of Wisma Genting, providing a source of sustained recurring income and long-term value for the property.

In its rationale for acquiring Segambut Land, Genting Malaysia says it complements the company’s business activities. Genting Malaysia is the sole tenant renting a portion of Segambut Land as a storage and depot for its buses and limousines, integral components in its transport-related services to and from Resorts World Genting. It also states the potential for Segambut Land to be developed and improved on, either for Genting Malaysia’s use or for other future purposes.