KUALA LUMPUR: The manager of Sentral Real Estate Investment Trust
(Sentral REIT) has inked a conditional sale and purchase agreement to dispose of Wisma Sentral Inai in Kuala Lumpur to Turiya Properties Sdn Bhd, a unit of Turiya Bhd, for RM135mil cash.
In a bourse filing, Sentral REIT Management Sdn Bhd said its investment cost in the 12-storey commercial building on Jalan Tun Razak came to RM136.04mil.
Based on a carrying value of RM150mil as at Dec 31, 2024, the group expects a net loss of RM4mil following the proposed disposal.
The property, which is currently vacant, was completed in 1994. It has a land area of 39,439 sq ft, a net lettable area of 233,021 sq ft and features 310 parking lots.
The agreement is conditional subject to the Main Market-listed Turiya securing shareholders' approval for the purchase.
According to Sentral REIT, it is of the view that it is an opportune time to divest the property as it has been vacant since July 2022.
"The proposed disposal will provide Sentral REIT with financial flexibility to pursue yield accretive investments or, in the absence of appropriate investments, to pare down existing borrowings for enhanced returns to unitholders.
"The disposal consideration was arrived at, on a 'willing buyer willing seller' basis, and it is the best offer price from prospective purchasers after various rounds of negotiation," It said.
It said the net proceeds from the proposed disposal will be utilised to pursue accretive commercial assets within 12 months of the completion date or to pare down existing borrowings.
