SENTRAL Real Estate Investment Trust (Sentral REIT) has today signed a conditional sale and purchase agreement (SPA) to acquire Menara CelcomDigi for RM450 million from Puncak Wangi Sdn Bhd (PWSB), a wholly-owned subsidiary of Malaysian Resources Corporation Bd (MRCB).
The proposed acquisition is set to increase Sentral REIT’s total asset size by 21% from RM2.15 billion to approximately RM2.60 billion upon completion.
The purchase consideration was determined based on the market value of RM450 million, as per the valuation certificate by CBRE WTW Valuation & Advisory Sdn Bhd, an independent registered valuer appointed by Sentral REIT.
The property’s purchase will be financed through a combination of equity and debt funding exercises, Sentral REIT tolf the bourse in a filing today.
An equity funding exercise involving the issuance of up to 123.72 million placement units will take place, with institutional investors identified later.
MRCB, Sentral’s sponsor, will subscribe for placement units for up to 34.57 million placement units to maintain its current percentage unitholdings in the trust.
The actual number of placement units to be issued cannot be determined at this juncture and will depend on the actual placement size and the issue price of the placement units, which can only be determined upon completion of the bookbuilding exercise for the proposed placement.
The issuance of placement units will be determined upon completion of the bookbuilding exercise.
The proposed acquisition is subject to approvals from PWSB shareholders, non-interested unitholders of Sentral REIT, and Bursa Securities.
Expected to be completed by the end of 2023, this acquisition will enhance Sentral REIT’s portfolio by adding income, tenant diversity, and geographical reach.
“The property is a strategic fit to Sentral REIT’s current portfolio of nine quality commercial properties. We are positive about the growth prospects of the trust as we increase its footprint in Klang Valley.
“We believe that PJ Sentral is an attractive and prime business area strategically located within Klang Valley, ” said Sentral REIT Management Sdn Bhds chairman Tan Sri Saw Choo Boon.
He also expressed confidence in the strategic fit of the property with Sentral REIT’s portfolio. The Property, anchored by Celcom Bhd, is fully occupied under a long-term lease.
Saw said the acquisition reflects Sentral REIT’s commitment to delivering stable returns to its unitholders and reinforces MRCB’s support as its sponsor.
The increase in circulating Sentral REIT units through the proposed placement is expected to enhance trading liquidity and marketability, he added.
Sentral REIT gained half a sen or 0.6% to close at 83.5 sen today, with a market value of RM895 million. – TMR