IOI Corp agrees to buy owner of Menara Citibank

By BUSINESS TIMES

The proposed purchase of Menara Citibank’s owner, Inverfin, is a rare opportunity and strategic move for the plantation group to buy a Grade A investment property, says IOI Corp

PLANTATION group IOI Corp Bhd has agreed to buy Inverfin Sdn Bhd (ISB), the owner of 50-storey Menara Citibank in Kuala Lumpur, for RM586.7 million cash.

Inverfin, which is owned by US lender Citigroup, Singapore’s CapitaLand Ltd and Amsteel Corp Bhd, also has a RM160 million debt from the sale of seven-year bonds.

IOI said the proposed acquisition presents a rare opportunity and strategic move for them to acquire a Grade A investment property located at a very prime area within the vicinity of Kuala Lumpur City Centre.

“Menara Citibank is presently enjoying close to 100 per cent occupancy rate with quality tenants consisting of multinational companies and reputable companies in their respective industries,” IOI said in a statement to Bursa Malaysia yesterday.

ISB recorded a net profit of RM20.37 million for the financial year ended December 31 2007.

The net book value of the Menara Citibank based on the latest audited accounts is RM458 million and the gross rental revenue is about RM43.3 million. This excludes a RM3.3 million revenue from the car park.

The proposed buy is due to be completed within the fourth quarter of 2008.

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