Mah Sing finds new buyer for its Grade A office block

KUALA LUMPUR: Mah Sing Group Bhd, via its wholly owned subsidiary Star Residence Sdn Bhd entered into a sale and purchase agreement (SPA) with investment holding company T.S. Law Realty Sdn Bhd for the en bloc sale of the East Wing of The Icon@JalanTun Razak for RM226.5 million cash Dec 24.

The 20-storey Grade A freehold commercial building located within the city's Golden Triangle has a total floor area of 278,182 sq ft. Included in the sale are 301 parking bays located at the podium and basement level.

Mah Sing is giving to T. S Law Realty a monthly rental guarantee of RM1.3 million for three years from the actual date of vacant possession, or a yield of 7% per annum. The building, Mah Sing said in a statement, will be in turn leased to offset the rental guarantee.

The sale has come on the heels of a termination of a sales and purchase agreement signed in 2007 between Star Residence Sdn Bhd and Prompt Symphony Sdn Bhd for the building. The termination was due to the default in payment of the balance purchase consideration by Prompt Symphony Sdn Bhd, Mah Sing said. Star Residence Sdn Bhd issued a termination notice to Prompt Symphony Sdn Bhd and forfeited the deposit of RM42.67million.

Mah Sing has on  Nov 27, 2007 entered into the sale and purchase agreement with Prompt Symphony Sdn Bhd for the en bloc sale of East Wing for RM237 million.  

A put & call option agreement between the parties was signed on Nov 27, 2007 for the sale of  not less than 301 car parking bays in The Icon@Tun Razak for a total of RM18 million cash.

East Wing and West Wing make up The Icon@Tun Razak, a purpose-built Grade A office building with more than 500,000 sq ft of lettable space in the vicinity of Kuala Lumpur City Centre (KLCC). Its design boasts large floor plates of about 30,000 sq ft per floor.

The certificate for occupation of The Icon@Tun Razak has been issued and it is now vacant. With the proposed sale of East Wing, the project is fully sold, Mah Sing said.

Star Residence has in 2006 paid RM53 million for the about 39,461 sq ft commercial plot on which the project sits.