Fitters buys Plaza Pekeliling for RM28.28 million

PETALING JAYA: Fitters Diversified Bhd is acquiring the 33-year old Plaza Pekeliling on Jalan Tun Razak in Kuala Lumpur from GCP Tower Sdn Bhd for RM28.28 million, with plans to redevelop it into a small office/home office (SOHO) building.
"As a niche developer, we are pleased to have the opportunity to develop another project in a strategic location. Our experience in developing Zetapark City at Setapak comes in handy in this new development, which we hope to create SOHO products for the value discerning consumers," Fitters managing director Datuk Richard Wong said in a statement yesterday.
The group said in a filing with Bursa Malaysia yesterday that its wholly-owned subsidiary Fitters Building Services Sdn Bhd had entered into a sale and purchase agreement (SPA) with GCP Tower yesterday to acquire all 70 parcels of office lots and 363 car park bays.
The 70 parcels of office lots are each held under an individual document of strata title and the 363 car park bays are located on levels B1 and B2 of the building.
The office tower is located on 2.3 acres of freehold land with a built-up area of 290,798 sq ft. The net lettable area is 144,376 sq ft. The occupancy and net book value were not disclosed in the filing.
According to Fitters, the purchase price was offered after taking into consideration, inter alia, the strategic location of the property and the market value of the office building in the surrounding vicinity. No valuation was carried out on the property.
Fitters will fund the acquisition through internally generated funds and/or bank borrowings.
"The proposed acquisition represents an opportunity for Fitters to expand its property development and construction business (by venturing into development of work suites or SOHO or hotels for on-sale to the market) where the group is currently in and is expected to contribute positively to the future earnings of Fitters," it said.
The acquisition is subject to approval of the Economic Planning Unit of the Prime Minister's Department. It expects to complete the acquisition with vacant possession within six months from the date of the SPA.