BFood to acquire two commercial units at Berjaya Times Square for RM15.67mil

KUALA LUMPUR: Berjaya Food Bhd (BFood) has proposed to acquire two freehold commercial units at Berjaya Times Square for a cash consideration of RM15.67mil, or RM650 per sq ft.

In a filing with Bursa Malaysia, BFood said its wholly-owned subsidiary, Berjaya Starbucks Coffee Company Sdn Bhd (BStarbucks) had entered into two separate sale and purchase agreements (SPAs) with Berjaya Times Square Sdn Bhd (BTS), a wholly-owned subsidiary of Berjaya Assets Bhd (BAssets) for the proposed acquisition.

The property, with a total floor area of about 24,115 sq ft, is located on Level 10 of Berjaya Times Square.

It is held under Strata Title Geran 56069/M1/11/1120 and a portion of Geran 56069/M1/11/1119, Lot No. 2001, within Section 52, Town and District of Kuala Lumpur, State of Wilayah Persekutuan Kuala Lumpur.

The property comprises two freehold commercial units of which substantial portions of about 19,524 sq ft. were subdivided into six office lots and are currently tenanted to BStarbucks and other party as their offices.

The remaining floor area of approximately 4,591 sq ft. is currently not occupied.

“The property was completely developed by BTS in 2003 and has a net carrying value as at June 30, of about RM9.77mil,” BFood said.

It said the consideration for the proposed acquisition would be funded via internally generated funds of BStarbucks.

“Currently, BStarbucks is renting the commercial units as its head office. The proposed acquisition will enable BStarbucks to own the property to mitigate any future hike in rental cost as well as to benefit from any future appreciation in the longer term,” it said.