By BUSINESS TIMES
QUILL Capital Management Sdn Bhd (QCM), the manager of Quill Capital Trust (QCT), plans to buy Wisma Technip and Plaza Mont’ Kiara for RM215 million.
The company will buy Wisma Technip from Aragorn ABS Bhd for RM125 million, and Plaza Mont’ Kiara commercial shops and car park lots from Sunrise Bhd for RM90 million.
Mayban Trustees Bhd, as trustee of QCT, yesterday signed separate conditional agreements with the respective parties.
The acquisitions are expected to be completed by the fourth quarter of this year.
“Within six months from listing, we are adding to our portfolio two yield-accretive assets with high occupancy and long term tenancies. QCT will also achieve better geographical diversification with this latest foothold in the Klang Valley,” QCM chief executive officer Chan Say Yeong said in a statement yesterday.
He said the acquisition is in line with the group’s strategy to doubling QCT’s asset size to RM560 million by end-2007.
QCT currently holds four buildings in Cyberjaya.
Wisma Technip is a fully occupied office building with a net lettable area of 233,021 sq ft while Plaza Mont’ Kiara has a a net lettable area of 73,408 sq ft and is 94.9 per cent occupied.
QCM has also announced a proposed placement of new units in QCT to raise gross proceeds of up to RM377.2 million to finance the proposed acquisitions and other requirements.
The proposed placement of not exceeding 251.4 million units will be to institutional and other investors as well as to the two substantial unitholders.
Capital Commercial Trust (CCT) and the Quill Group may subscribe for new units such that their proportionate unitholdings of 30 per cent in QCT is maintained.
The proposed placement will increase QCT’s fund size to up to 490.1 million units from 238.7 million units.
HwangDBS Investment Bank Bhd and Aseambankers Malaysia Bhd are joint placement agents for the exercise.