Soi Lek: Menara Multi-Purpose long-term investment for MCA

KUALA LUMPUR: The Malaysian Chinese Association's (MCA) acquisition of Menara Multi-Purpose is a long-term investment for the party, said president Datuk Seri Dr Chua Soi Lek.

On Monday, Sept 26, Multi-Purpose Holdings Bhd (MPHB) announced that it had disposed of the 43-storey Menara Multi-Purpose together with 414 car park bays free from encumbrances to MCA for RM375 million.

At the press conference after chairing the party's central committee meeting, Chua said the acquisition was made based on the recommendation of its investment committee.

"This was done based on the recommendation of the investment committee to the party central committee and we regard that as a long-term investment. That's all.

"We have no money to go for any other acquisition," he said when asked if the party has plans to acquire similar investments.

The 17-year-old freehold Menara Multi-Purpose has 99.07% occupancy with monthly rental income of RM2.09 million (gross rental per month ranges from RM4.25 per sq ft for upper floors to RM10.95 per sq ft for lower floors) from which MCA will earn a steady recurring income.

MCA will have no problem in funding the acquisition as the party has been the beneficiary of the generous dividends from Star Publications (M) Bhd via its investment arm Huaren Holdings Sdn Bhd which held 42.4% of the publication company until November last year. Huaren has since divested its shares in Star to MCA.

According to MPHB in its announcement to Bursa Malaysia on Tuesday, MCA is expected to make a payment in two tranches of RM87.5 million and RM250 million within 30 and 90 days respectively of the sale and purchase agreement date on Tuesday. The payment of RM7.5 million and RM30 million will be paid as earnest deposits and upon the execution of the SPA respectively.

The disposal is expected to conclude by end of 2011.