Malaysian Resources Corporation Berhad via its subsidiary Puncak Wangi Sdn Bhd has proposed to dispose of office tower Menara CelcomDigi Sentral REIT for cash consideration of RM450 million.
The sale will be done through Maybank Trustees Berhad acting solely in the capacity of trustee for Sentral REIT. MRCB said the disposal consideration was arrived at on a willing buyer-willing-seller basis after taking into consideration the market value of the Property of RM450 million as at 23 June 2023, as ascribed by the Valuer. The audited net book value of the property was RM373.87 million as at 31 December 2022, MRCB is getting a 20% premium on the market value in this instance.
The group said the disposal is in line with its strategy to unlock value from our investment properties once a long-term lease has been secured. Furthermore, it said the proposed disposal is exempted from real property gains tax and thus increasing the net proceeds. The Proposed Disposal is expected to result in a pro forma gain of approximately RM52.56 million based on
the net book value of the Property as at 31 December 2022.
MRCB will use the cash proceeds to pare down borrowings which is expected to result in estimated gross interest savings of approximately RM10.79 million per annum based on the prevailing interest rate of 5.15% as at the LPD.
Celcom Berhad has a lease on the building for 15 years commencing from 1 January 2020 and expiring on 31 December 2034 and will be automatically extended for 2 further terms of 3 years each in accordance with the terms of the Lease Agreement.
