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Wednesday July 18, 2007
By KATHY FONG
PETALING JAYA: Vision City, the integrated development project, could possibly be injected into Bursa Malaysia-listed Quill Capital Trust (QCT) on its completion in 2010 by the Quill Group of Companies (Quill group).
Quill Retail Malls Sdn Bhd, a subsidiary of Quill group, on Monday signed an agreement with Rashid Hussain Bhd to acquire the uncompleted Vision City project at Jalan Sultan Ismail, Kuala Lumpur, for RM430mil.
Based on QCT’s listing agreement, its manager, Quill Capital Management Sdn Bhd, had the first right of refusal on the commercial properties developed by Quill group and CapitalLand group, both of which are major shareholders.
Investment analysts said this right of refusal implied that there was a possibility of Vision City being injected into QCT should the development offer promising returns.
Quill group could only inject completed commercial property assets with tenancies into the real estate investment trust (REIT).
“The supply of investment-grade commercial space continues to be scarce.
“Against this backdrop, we believe Quill group's investment in Vision City will yield good returns and we intend to fast-track its completion to leverage on the strong demand,” executive director Datuk Michael Ong said in a statement issued on Monday.
The deal is one of the largest single property transactions in recent years.
The acquisition includes a pre-approved development order for the construction of a seven-level retail centre with a net lettable area (NLA) of 752,000 sq ft, a 35-storey office tower with NLA of 500,000 sq ft, a 45-storey serviced apartment block with 450 units and 2,280 car parks.
HSBC Malaysia's new annexe building, which is expected to be completed by the first quarter of 2010, is another asset that may be injected into QCT.
In June, the REIT announced to Bursa Malaysia it intended to buy Wisma Technip and Plaza Mont' Kiara for RM215mil.
The trust's current asset portfolio include HSBC Global Service Centre, BMW Malaysia headquarters and two DHL buildings, all of which are in Cyberjaya.
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