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KUALA LUMPUR: Starhill Real Estate Investment Trust (Starhill REIT) has entered into sale and purchase agreements for the proposed sale of Starhill Gallery and the Trust's parcels in Lot 10 Shopping Center, both in Kuala Lumpur to Starhill Global REIT in Singapore.
The sale consideration for the Retail Properties is RM1. 03 billion comprising RM629 million for Starhill Gallery and RM401 million for the Lot 10 property.
In an announcement on Friday April 16, Starhill REIT said Ara Bintang Bhd, a locally incorporated special purpose vehicle will acquire the retail properties via an asset-backed securitisation exercise. Ara Bintang is a subsidiary of the trustee of Starhill Global REIT which is listed on the Singapore Stock Exchange
“The sale consideration was determined based on independent valuations done on the properties and will enable Starhill REIT to unlock the value of the properties at market value,” said Starhill REIT.
After the proposed disposal of the retail properties, Starhill REIT will be repositioned as a global hospitality REIT with two assets in its portfolio, namely the JW Marriott Hotel Kuala Lumpur and 60 units of serviced apartments, 4 levels of commercial podium and 2 levels of car parks located within The Residences at The Ritz-Carlton, Kuala Lumpur.
Tan Sri Datuk Francis Yeoh Sock Ping, Chief Executive Officer of Pintar Projek Sdn Bhd, which is the Manager of Starhill REIT, said in a statement, "On completion of the rationalisation process, Starhill REIT in Malaysia will be transformed into a streamlined, pure-play vehicle for prime, yield accretive hotel and hospitality-related assets, both in Malaysia and in renowned international destinations. The repositioning will open up new avenues for expansion of Starhill REIT's portfolio and scope of investments in order to further diversify and enhance the Trust's asset base within the high-end, luxury hospitality segment".
The proposed sale is part of a restructuring of the retail and hotel asset portfolio under the control of YTL Corporation Berhad (YTL Corp) which is a major unitholder of both Starhill REIT in Malaysia and Starhill Global REIT in Singapore. The proposed disposal is subject to the approval of regulatory authorities and Starhill REIT's unitholders at a general meeting to be convened, the details of which will be determined and announced at a later date.
