Quill Capita Trust IBM, one of the nine remaining properties in QCTQuill Capita Trust IBM, one of the nine remaining properties in QCT

Malaysia-listed office and retail REIT Quill Capita Trust (QCT) announced on 25 February that it will be divesting a five-storey office building in Petaling Jaya, Selangor for MYR27.3 million (USD7.6 million).

The property, known as Quill building 10, will be sold to Malaysian property investment company Aldwych Capital Sdn Bhd.

The building, with 68,000 square feet of net lettable area, is on a leasehold of 99 years which will expire in January 2063 and is currently vacant. According to documents filed with Bursa Malaysia, audited book value for the property as of December 2014 stands at MYR26.5 million. The building was acquired in March 2008 for MYR22.7 million.

Management of QCT has described the divestment as one that is in line with the REIT’s larger objectives. “The manager feels that as there is limited upside for future rental growth and given the favorable market prices for asset sales, it is an opportune time to dispose of this asset and re-deploy the capital for more yield accretive properties”, said QCT in a document filed with the bourse.

Once the divestment completes, QCT will have a portfolio of nine properties with an approximate book value of MYR810 million.

Units of QCT are currently listed on the Bursa Malaysia at MYR1.23.

Quill Capita Trust IBM, one of the nine remaining properties in QCT
Quill Capita Trust IBM, one of the nine remaining properties in QCT

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.