UOA Reit to buy office tower in KL for RM700 million

UOA Reit to buy office tower in KL for RM700 million:



UOA Real Estate Investment Trust (UOA REIT) is buying UOA Corporate Tower in Bangsar South, Kuala Lumpur from its parent, UOA Development Bhd for RM700 million cash.

UOA Corporate Tower is a 38-storey office building measuring 22,927 sq ft. It is being sold to UOA REIT at a 2.5 per cent or RM18 million discount, the developer said in a filing with Bursa Malaysia.

The building, which was completed in 2016 has a net book value of RM586 million as at the close of the financial year ended December 31, 2019 (FY19) and is being sold for a gain of RM114 million.

UOA Development said from the total RM700 million proceeds, RM646 million or 92.9 per cent will be utilised to fund the development of District K on Jalan Ipoh, Phase II of the UOA Business Park in 110 Shah Alam, Lot 2507 in Kerinchi, Kuala Lumpur and V50, Bangsar South.

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The total estimated outstanding cost of these properties is RM1.36 billion, it said.

The group said RM32.36 million would be used a