KUALA LUMPUR: Genting Plantations Bhd
’s (GenP) Indonesia-based unit is acquiring its corporate office located on the 15th floor of DBS Bank Tower in Jakarta for 93.8 billion rupiah (RM29.3mil) from a subsidiary of sister firm Genting Bhd.
In a filing with Bursa Malaysia, GenP said its unit PT Genting Plantations Nusantara had entered into a conditional agreement with Genting Bhd’s 95%-owned indirect subsidiary PT Lestari Properti Investama (PT LPI) to acquire the office measuring 1,923 sq metres
On completion of the proposed purchase, the parties have also mutually agreed to an early termination of the lease arrangement - valid until Feb 28, 2020 - at a compensation amount of 7.2 billion rupiah (RM2.25mil).
“The proposed acquisition provides a safeguard against the increase in lease rental and expected price appreciation of commercial properties in Jakarta over time as the DBS Bank Tower is strategically located in the Jakarta central business district, enjoys excellent connectivity and is surrounded by various amenities and signature developments,” GenP said.
GenP said the occupancy rate of the office unit was about 70% currently so the office had enough space to accommodate the GenP group’s current and foreseeable functional corporate office requirements.
The proposed purchase is expected to be completed by the fourth quarter of this year.
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