KUALA LUMPUR: Pintar Projek Sdn Bhd, the manager of YTL Hospitality REIT (YTL REIT), has entered into a conditional sale and purchase agreement with YTL Majestic Hotel Sdn Bhd to acquire Majestic Hotel Kuala Lumpur for RM380 million.
YTL Majestic is the indirect subsidiary of YTL Corporation Bhd. “Maybank Trustees Bhd, the trustee of YTL REIT, will sub-lease the property to YTL Majestic Hotel upon the completion of the proposed acquisition under a sub-lease agreement for 15 years, with an option granted to the vendor to renew for a further 15 years,” said YTL REIT in a filing to Bursa Malaysia today.
The sub-lease arrangement would provide YTL REIT with a steady and secure income stream and is expected to be accretive to the trust's future distributable income and distribution per unit. –- Bernama