ARREIT buying 63-storey Vista Tower for RM455m

  • Business
  • Thursday, 07 Sep 2017

The Intermark development is made up of the Intermark mall, DoubleTree by Hilton, offices Integra Tower and Vista Tower.

KUALA LUMPUR: AmanahRaya-Kenedix REIT Manager Sdn Bhd (ARREIT) is buying the 63-storey tower block Vista Tower here from The Intermark Sdn Bhd for RM455mil cash consideration.

It said on Thursday the purchase consideration for the building in the Kuala Lumpur City Centre would be funded via a RM450mil medium-term note programme and its own funds of RM5mil.

ARREIT said CIMB Islamic Trustee Bhd, as trustee for and on behalf of ARREIT, had signed a conditional sale and purchase agreement with The Intermark for the proposed acquisition of Vista Tower.

It said CIMB Islamic Trustee was able was able to acquire Vista Tower for RM455mil, which was 13% beow the current market value of RM523mil. 

“The proposed acquisition is value accretive as there will be an immediate unrealised gain of RM67.1mil to be recognised by ARREIT from the proposed acquisition,” it said.

ARREIT said the proposed purchase would see its total asset value (TAV)  increase from RM1.037bil as at June 30, 2017 to RM1.561bil.  

“This will position ARREIT as a top 10 listed REITs in Malaysia (excluding KLCC Stapled Securities) by TAV, thus enhancing the overall presence and reputation of ARREIT amongst the Malaysian investment community,” it said.

The deal was brokered by CBRE/WTW.

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