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Property News

KLCC Property acquires remaining 40% equity in Suria KLCC

After the acquisition, Suria KLCC will be a wholly-owned subsidiary of KLCC Property Holdings. (Bernama pic)

PETALING JAYA: KLCC Property Holdings Bhd (KLCCP) has inked a share purchase agreement with the existing shareholders of Suria KLCC Sdn Bhd to acquire the remaining 40% equity interest worth RM1.95 billion.

“The shareholders are Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Ltd, and Bold Peak Sdn Bhd,” it said in a filing with Bursa Malaysia.

Upon completion, Suria KLCC, a 60%-owned subsidiary of KLCCP would become a wholly-owned subsidiary of KLCCP.

KLCCP CEO Shah Mahmood said the proposed acquisition would solidify the company’s overall portfolio and is anticipated to generate a yield of 6% to 7%.

“With a focussed 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 said.

The group said the proposed acquisition would be funded by external borrowings and is expected to be completed by the second quarter of 2024.

KLCCP and KLCC Real Estate Investment Trust (KLCC REIT), collectively known as KLCCP Stapled Group is Malaysia’s largest self-managed stapled security that invests, develops, owns, and manages a stable of iconic and quality assets.

It constituted 31% of Bursa Malaysia’s Real Estate Investment Trust Index.

At the close of trading, KLCCP Stapled Group’s share price was unchanged at RM7.25, giving it a market capitalisation of RM13.09 billion.

Source: FMT News

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