Genting Malaysia to buy Wisma Genting, land

PETALING JAYA: Genting Malaysia Bhd (GMB), formerly known as Resorts World Bhd, has proposed to acquire Wisma Genting in the heart of Kuala Lumpur and two parcels of lands in Segambut from parent company Genting Bhd for RM228.6mil.

Under the deal, GMB will pay RM212.7mil to Genting to acquire the 25-storey Wisma Genting from Genting’s Oakwood Sdn Bhd.

Meanwhile, GMB will pay RM15.9mil to acquire Genting’s 100% owned Genting Highlands Tours and Promotion Sdn Bhd, the owner of two parcels of adjoining develoment land in Segambut.

Genting owns 48.65% of GMB.

GMB, which occupies eight floors and two basement levels at Wisma Genting, said the acquisition would enable it to save RM3mil in annual rental cost and earn rental income of RM17.3mil from other tenants.

The purchase of the property in Segambut would also reduce GMB’s rental expenses by RM300,000 a year, while offering it the opportunity for development in the future.

In a separate statement, Genting said the disposals were consistent with the group’s intention of streamlining its Malaysian property investment and management activities under GMB.

“The disposals are expected to be completed on Dec 11, 2009 at which time, Oakwood and GHTP will cease to be subsidiaries of Genting,’’ the company told Bursa Malaysia yesterday.

By The Star