Tower Reit selling office parcels, carpark bays at Menara ING for RM132mil

 

PETALING JAYA: Tower Real Estate Investment Trust (Reit) is selling all its 19 office parcels and 190 carpark bays at Menara ING to Goldstone Kuala Lumpur Sdn Bhd for RM132.3mil cash.

The agreement on the proposed disposal was done through the manager of the trust, GLM REIT Management Sdn Bhd.

According to its filing with the exchange yesterday, the disposal consideration was arrived at on a willing buyer, willing seller basis after taking into consideration the potential development value of the land on which the property was sited.

“The proposed disposal will not have any effect on the issued and paid-up unit capital and substantial unitholders’ holdings of the trust but it will have a favourable impact on the net gearing of the Tower Reit,” it said.

Based on the net asset value (NAV) per unit of the trust as at Sept 30 of RM1.79, the proposed disposal is expected to result in an increase in the NAV per unit by approximately 5%.

Tower Reit said the proposed disposal was expected to result in a total realised gain of approximately RM40.4mil, of which RM15mil had been recognised as fair value gains in the prior years.

The disposal will contribute positively to the earnings of the trust for the next financial year,” it said.

Barring any unforeseen circumstances, the proposed disposal is expected to be completed by the first half of next year.

Menara ING is sited in Jalan Raja Chulan, an established office address, and a major road connecting the city centre to Jalan Sultan Ismail and the Bukit Bintang retail precincts and the Kuala Lumpur city centre.

The other two properties under Tower Reit’s portfolio are commercial offices within Menara HLA amd HP Towers valued at RM325mil and RM216mil respectively as at Dec 31, 2013.

~ By THE STAR

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