KUALA LUMPUR (Dec 11): Sentral Real Estate Investment Trust (Sentral REIT) said on Monday that it has completed the acquisition of Menara CelcomDigi in Petaling Jaya from Malaysian Resources Corp Bhd (MRCB) for RM450 million.

MRCB is the single largest unitholder of Main Market-listed Sentral REIT, with a 27.94% equity interest.

Sentral REIT had on July 25 struck a deal with MRCB’s wholly-owned unit Puncak Wangi Sdn Bhd to acquire Menara CelcomDigi, a 27-storey office building.

The acquisition was funded with cash raised through a combination of equity and debt funding exercises.

The equity funding exercise entailed a placement of up to 123.72 million shares, of which 34.56 million shares are for MRCB’s undertaking to maintain its current percentage unitholding in Sentral REIT.

The placement, which represents about 11.5% of its previous total units in issue, was completed on Monday, said Sentral REIT in a bourse filing.

Menara CelcomDigi, which includes six levels of podium and three levels of basement parking, is expected to expand Sentral REIT’s total assets by 21% to RM2.6 billion, from RM2.15 billion as at Dec 31, 2022
 
The price was arrived at based on a market valuation done by CBRE WTW Valuation & Advisory Sdn Bhd (formerly known as CH Williams Talhar & Wong Sdn Bhd), an independent registered valuer appointed by Sentral REIT.

Given that Menara CelcomDigi is located within the prime commercial hub of Petaling Jaya and has a net lettable area 450,000 sq ft, Sentral REIT Management Sdn Bhd chairman Tan Sri Saw Choo Boon had in July noted that the office tower is “a strategic fit” to the REIT’s existing portfolio of nine commercial properties.