Sentral REIT To Acquire Arcoris Plaza's Assets For RM70 Mln

KUALA LUMPUR, May 27 (Bernama) -- Sentral Real Estate Investment Trust (REIT) Management Sdn Bhd has inked a conditional sale and purchase agreement (SPA) to acquire UEM Sunrise Bhd's asset at Arcoris Plaza Development here for RM70 million.

The company said in a filing with Bursa Malaysia today that the SPA was signed between Sentral and both of UEM's units, namely Arcoris Sdn Bhd (ASB) and Sun Victory Sdn Bhd (SVSB).

It said the SPA entails the acquisition of 38 stratified retail units and 1,432 car park bays in Arcoris Plaza Development.

“A sum of RM7 million being 10 per cent of the purchase consideration shall be paid by Sentral to SVSB upon execution of the SPA.

"The remaining balance of RM63 million shall be paid by Sentral to SVSB's solicitors, acting as stakeholders, within three months from the completion date, or within an additional one-month extension period," it said.

On prospect, Sentral said the property is expected to be positive in view of its strategic location, good accessibility and income stream.

It said the property is strategically located in the centre of the affluent enclave Mont Kiara, which is a mature neighbourhood with a large expatriate population, and it fulfils the criteria of a strategic location with good infrastructure, reputable international schools, bustling commercial centres, entertainment and leisure facilities. 

“The property, located less than 500 metres from Plaza Mont Kiara, one of Sentral's existing retail asset, thus, Sentral will be able to take advantage of greater economies of scale in the Mont Kiara neighbourhood.

“It also enjoys full occupancy rate with built-in gross turnover rental structure in addition to fixed rental structure,” it said.

Sentral expected the property to add value to the unitholders in the long run.

-- BERNAMA