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Wednesday, January 16, 2008

Quill REIT to acquire three more prime assets

PETALING JAYA: Quill Capita Management Sdn Bhd is acquiring three more prime assets in the Klang Valley, for a total purchase consideration of RM94.5 million to be injected into its real estate investment trust (REIT), Quill Capita Trust (QCT). The acquisition is expected to be complete by April, which would increase its property portfolio size by 17%, from RM549 million to RM643 million.

Chan: QCT would continue to be active in its acquisition strategy in 2008

The properties involved in the acquisition are Quill Building 5-IBM, a 5-storey property located in Cyberjaya; Quill Building 8-XPJ, a 3-storey property in Shah Alam; and Quill Building 10-HSBC, a 4-storey property in Section 13, Petaling Jaya. The three buildings have a total net lettable area of more than 203,000 sq ft, which would provide an initial net property yield of 6.3% per annum to QCT.

The acquisition of the three new properties was on the back of sustainable and healthy economic growth in the Klang Valley, with the KL office market experiencing an upturn due to strong demand from business expansion coupled with the tight supply of quality office space expected
in the next 12 months.

QCT believes there is increased foreign interest in the KL property market because of favourable foreign property investment policies and expected foreign exchange gains.

Other factors include attractive the pricing and yields offered here compared to regional peers as well as a developing REIT market.

This latest acquisition also marks QCT’s progress as one of the fastest growing commercial REITs in Malaysia, its chief executive officer Chan Say Yeong said in a statement yesterday.

“With the acquisitions of Wisma Technip and the commercial units of Plaza Mont’Kiara in 2007, and the recent revaluation increase in its portfolio by RM57.1 million, QCT has doubled its total assets from RM290.6 million to RM584.9 million,” he said. The REIT has another four properties located in Cyberjaya.

He added that QCT would continue to be active in its acquisition strategy in 2008, as the REIT targets to achieve a total asset size of approximately RM750 million by year-end. “We will be acquiring properties in prime locations that will not only attract blue-chip tenants, but have the potential for long-term value appreciation,” he said.

QCT announced a distributable income of RM19.26 million for the financial year ended Dec 31, 2007, an increase of 34.5% from its forecast of RM14.32 million as stated in its Initial Public Offering prospectus dated Dec 10, 2006.

By theSun (by Yap Yew Jin)

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