KUALA LUMPUR (April 29): UOA Real Estate Investment Trust (KL:UOAREIT) said its plan to acquire three commercial properties from a unit of related-party UOA Development Bhd (KL:UOADEV) for RM200 million will not proceed after unitholders voted down the deal.

The trust said the resolution for the acquisitions was not carried at an adjourned unitholders' meeting on Wednesday, causing a key condition precedent under the sale and purchase agreements to remain unmet.

“The SPAs shall cease to have any effect and become null and void,” UOA REIT said in a Bursa Malaysia filing.

The trust also clarified that the issuance of 107.83 million new consideration units, which was meant to part-settle the RM89.5 million purchase of the car park component, would not proceed following the rescission.

The proposed transaction, first announced in October last year, involved the acquisition of UOA Business Park Tower 2A for RM55.7 million, Tower 2B for RM54.8 million, and a six-level car park with 3,101 bays for RM89.5 million.

The total consideration was to be funded via RM110.5 million in bank borrowings and the issuance of new units.

The assets are located within UOA Business Park in Glenmarie, Shah Alam, a freehold integrated commercial development linked to the Subang Jaya KTM and LRT interchange station via a covered pedestrian bridge. Tower 2A was fully occupied as at July 15, 2025, while Tower 2B had an occupancy rate of about 83%.

UOA REIT had said the acquisition would enlarge its portfolio value to about RM1.9 billion from RM1.7 billion and lift its net lettable area to 2.23 million sq ft from 2.06 million sq ft.

When the acquisition was proposed, UOA Development said the disposal would generate a net gain of RM35.8 million and that proceeds from the cash portion would be used for debt reduction, working capital and the development of a new commercial building adjacent to UOA Business Park.

Separately, unitholders at the meeting on Wednesday approved the proposed establishment of an income distribution reinvestment plan, which will allow them to elect to reinvest all or part of future cash distributions into new UOA REIT units instead of receiving cash.

Shares of UOA Development slipped two sen or 1.09% to close at RM1.81 on Wednesday, valuing the group at RM4.81 billion. UOA REIT units closed unchanged at 81 sen, valuing the trust at RM547.2 million.