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Monday, May 9, 2011

HK group Cheung Kong wins bid for malls

Tycoon Li Ka-Shing's Cheung Kong Group is believed to have won a bid to buy the three TMW Asia Property Fund's shopping complexes put up for sale in Malaysia.

Business Times was informed that the party would pay less than the RM500 million asking price set earlier but above the RM400 million level.

Sources say that the due diligence process by the Hong Kong bidder had been completed and it was a just a matter of signing on the dotted lines.

It is understood that a sale and purchase agreement will be signed very soon.

International property consultant Rahim & Co was appointed as the exclusive agent to handle the tender.

Real estate agent, Rahim & Co's managing director Robert Ang, when contacted by Business Times (BT) to confirm the news, declined to comment.

Last month, BT reported that Cheung Kong Group had emerged as the front-runner for tender which closed on March 8 2011.

The German-based TMW had put the Klang Parade in Selangor, Ipoh Parade in Perak and Seremban Parade in Negri Sembilan on sale.

It acquired theassets in 2005 from the Lion Group for RM340 million.

TMW is managed by Pramerica, the real estate investment management business of Prudential Inc from the US.

However, it is unclear which company or fund under the Cheung Kong group is purchasing the assets.

Cheung Kong helps manage AmFirst REIT in Malaysia via its affiliate ARA.

ARA Asia Dragon Fund, another affiliate of Cheung Kong, bought two properties in Malaysia last year - One Mont' Kiara in Kuala Lumpur and Aeon Bandaraya Mall Melaka - for RM710 million.

According to previous reports, Seremban Parade has a nett lettable area of 316,847 sq ft and sits on 1.97ha, Ipoh Parade has a nett lettable area of 594,414 sq ft on 4.14ha and Klang Parade has 696,045 sq ft of space.

By Business Times

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