KUALA LUMPUR (Jan 26): KLCC Property Holdings Bhd (KLCCP) is buying the remaining 40% equity interest in Suria KLCC Sdn Bhd, which owns and manages Suria KLCC Mall here, for RM1.95 billion.
In a statement on Friday, KLCCP said it has entered into a share purchase agreement with Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Ltd and Bold Peak Sdn Bhd for the proposed acquisition.
It added that the proposed acquisition will be funded by external borrowings and is expected to be completed by the second quarter of 2024. Suria KLCC will become a wholly owned subsidiary of KLCCP after the completion of the proposed transaction.
KLCCP chief executive officer Datuk Md Shah Mahmood said the proposed acquisition will solidify the stapled group’s overall portfolio and is anticipated to generate a yield of between 6% and 7%.
"With a focused tenant strategy, deep data driven customer understanding and its long-term plans to revitalise the retail industry, Suria KLCC has positive long-term prospects and will be value accretive to the asset portfolio of KLCCP Stapled Group,” he added.
KLCCP and KLCC Real Estate Investment Trust (KLCC REIT) are collectively known as KLCCP Stapled Group. Already, the group owns a diverse property portfolio largely located within the Kuala Lumpur City Centre including Petronas Twin Towers, Menara ExxonMobil and Menara 3 PETRONAS under KLCC REIT. Meanwhile, the non-wholly owned assets and assets with development and redevelopment potential, Suria KLCC, Mandarin Oriental, Kuala Lumpur hotel and a vacant land (Lot D1) are under KLCCP, which also has a 33% stake in Menara Maxis.
KLCCP Stapled Group units closed unchanged at RM7.25 on Friday, valuing the group at RM13.09 billion.