KUALA LUMPUR: Property developer Fitters Diversified Bhd intends to redevelop the abandoned 2.3-acre (0.93ha) Plaza Pekeliling site in Jalan Tun Razak here into a small office/home office (SoHo) concept building.

In a statement yesterday, Fitters (fundamental: 1.3; valuation: 1.8) said its wholly-owned subsidiary Fitters Building Services Sdn Bhd had signed a sales and purchase agreement (SPA) with GCP Tower Sdn Bhd to purchase the freehold property, which comes with 70 parcels of office lots and 363 units of car park bays for RM28.28 million.

GCP Tower is a wholly-owned unit of Global Carriers Bhd.

According to Fitters Diversified, the 33-year-old property has a built-up area of 290,798 sq ft with a net lettable area of 144,376 sq ft.

The purchase consideration, it said, will be satisfied via internally-generated funds and bank borrowings.

Fitters Diversified managing director Datuk Richard Wong said that as a niche developer, the group is pleased to have the opportunity to develop another project in a strategic location.

“Our experience in developing Zetapark City in Setapak comes in handy in this new development, which we hope to create SoHo products for the value-discerning consumers.”

The proposed acquisition, while not subject to Fitters Diversified shareholders’ approval, will need to procure the approval of the Economic Planning Unit of the Prime Minister’s Department, said the group.

In its filing with Bursa Malaysia on the Plaza Pekeliling acquisition, Fitters Diversified said the deal is targeted to be completed within six months of the SPA.

It also noted that the redevelopment is expected to contribute positively to the future earnings of the group.

Fitters Diversified closed up 1.5 sen yesterday at 65.5 sen, giving it a market capitalisation of RM307.37 million. 

The Edge Research’s fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations. Go to www.theedgemarkets.com for more details on a company’s financial dashboard.

This article first appeared in The Edge Financial Daily, on March 5, 2015.