SMRT to pay RM14.7m for 8 properties in Kota Kinabalu

SMRT Holdings Bhd is acquiring a string of properties in Kota Kinabalu, Sabah, from a cooperative society for RM14.7 million as part of its plan to invest into education-based properties.

The education, training and technology solutions provider is acquiring eight units of four-storey terrace shop and office units located in Plaza Juta KM 7, it said in an exchange filing yesterday.

The group said it expected a steady rental income stream and leverage on the appreciation potentials. SMRT said it plans to secure a bank borrowing of RM11.7 million to partly finance the proposed acquisition.

The seller is Koperasi NLFCS Bhd helmed by Tan Sri KR Somasundram, who was elected as a senator for Kedah in the 1960s, as its executive chairman.

The proposed acquisition was intended to extend the investment holding activities of SMRT within the property investment segment, subsequent to the consolidation of its education arm Minda Global Bhd, into the sister company namely SMR Education Sdn Bhd in Feb 18, 2020.

Post acquisition, it said it will terminate the current lease agreement between the vendor and the college, Cyberjaya College Kota Kinabalu Sdn Bhd, and enter into a fresh lease agreement with Cyberjaya College Kota Kinabalu.

Minda Global currently owns University of Cyberjaya and Asia Metropolitan University which operates in Johor Baru, Johor. It is also responsible for Cyberjaya Colleges which are based in Kota Kinabalu; Kuching, Sarawak; and Cyberjaya, Selangor; according to the subsidiary’s website. — TMR / Pic source: mindaglobal.com.my