MRCB-Quill REIT asset size reaches RM2 billion with Menara Shell

MRCB-Quill REIT asset size reaches RM2 billion with Menara Shell

PETALING JAYA: MRCB-Quill REIT (MQReit) is expected to expand its asset portfolio size to RM2.27 billion, from RM1.63 billion as at Dec 31, 2015, upon completion of its proposed acquisition of the 33-storey office tower known as Menara Shell.

In a statement yesterday, MQReit said that it had signed a conditional sale and purchase agreement to acquire the property for RM640 million from 348 Sentral Sdn Bhd, a unit of Malaysian Resources Corp Bhd (MRCB).

MQReit said the acquisition will be fully settled in cash, which will be raised via a combination of equity and debt funding exercises that entails a proposed placement involving the issuance of up to 406.67 million placement units.

“Notwithstanding the soft office market outlook, we are positive about the growth prospects of the Trust as we increase its footprint in KL Sentral. We believe that KL Sentral will continue to be an attractive and vibrant business location as it is a prime and strategically located commercial area within Klang Valley with an integrated transportation hub,” MRCB Quill Management Sdn Bhd (MQM) chairman Tan Sri Saw Choo Boon said, adding that it is a fit to its current portfolio to MQReit.

Saw said the acquisition will further expand MQReit’s portfolio in terms of both income and geographical spread, and enable it to continue to deliver stable returns to its unitholders.

He added, MRCB’s commitment to support the growth of MQREIT as its sponsor is further reinforced with its undertaking to subscribe for placement units to be issued pursuant to the proposed placement.

Saw said the increase number of MQReit units in circulation as a result of the proposed placement is also expected to improve the trading liquidity and marketability of MQReit.

– The Sun

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