KUALA LUMPUR: Sunway REIT Management Sdn Bhd has entered into a conditional sale and purchase agreement with Employees Provident Fund's (EPF) wholly owned subsidiary, Kwasa Properties Sdn Bhd to acquire six Giant hypermarkets/retail complexes for RM520 million.
Sunway REIT said the proposed acquisition is deemed a related party transaction due to the interest of one of the major unitholders of Sunway REIT, namely EPF.
"The purchase consideration is justifiable after taking into consideration that the properties are individually and collectively acquired below the market value of the properties where the purchase consideration represents a discount of approximately 12.3 per cent to the aggregate market value of the properties as ascribed by the valuer," it said in a filing with Bursa Malaysia.
Sunway REIT highlighted that opportunistic investment, accretion to earnings and distribution per unit, increase in income stability through the lease agreements and increased weighted average lease expiry of Sunway REIT's portfolio as well as increase in strength and geographical diversification of Sunway REIT's portfolio as the rationale of the proposed acquisition.
The proposed acquisition will further strengthen Sunway REIT's current position as the second largest listed Malaysian real estate investment trust based on property value as at December 31, 2022, it added.