KUALA LUMPUR: KLCC Property Holdings Bhd (KLCCP) is buying the remaining 40 per cent stake in Suria KLCC Sdn Bhd for RM1.95 billion.
KLCCP today entered into a share purchase agreement with the existing shareholders of Suria KLCC namely Ocmador (Malaysia) City Retail Centre Sdn Bhd, Port Moresby Investments Limited and Bold Peak Sdn Bhd
Now with the acquisition, Suria KLCC will become a wholly-owned subsidiary of KLCCP.
KLCCP and KLCC Real Estate Investment Trust (KLCC REIT), collectively known as KLCCP Stapled Group, owns and manages a stable of iconic and quality assets.
The group constitutes 31 per cent of Bursa Malaysia's Real Estate Investment Trust (REIT) Index.
KLCCP chief executive officer Datuk Md. Shah Mahmood said the acquisition will solidify its overall portfolio and is anticipated to generate a yield of 6.0-7.0 per cent.
"With a focused tenant strategy, deep data driven customer understanding and its long-term plans to revitalise the retail industry, Suria KLCC has positive long-term prospects and will be value accretive to the asset portfolio of KLCCP Stapled Group.
"The proposed acquisition will be funded by external borrowings and is expected to be completed by the second quarter of 2024," he said.
Suria KLCC is Malaysia's iconic experiential shopping destination with over 350 specialty stores ranging from global fashion brands and flagship stores to local favourites.