UOA REIT sells Wisma UOA Pantai to CIMB Bank for RM120m

PETALING JAYA: UOA Real Estate Investment Trust (UOA REIT) is disposing of Wisma UOA Pantai to CIMB Bank Bhd for RM120 million.
UOA REIT said the net capital gain arising from the disposal is estimated to be RM541,000 after taking into account all related expenses, according to its filing with Bursa Malaysia. The disposal proceeds will be utilised to reduce existing bank borrowings.
As the building was operating at a low occupancy rate, it said the disposal is in line with the objective of maximising returns to UOA REIT unitholders. As at April 2018, its occupancy rate only stood at 19%.
The almost 11-year-old building has a built up area of 294,535 square feet with an unaudited net book value of RM117.5 million.
UOA REIT shares closed unchanged at RM1.43 with 5,000 shares changing hands.