Malaysia-listed MRCB-Quill REIT is buying a 33-storey office tower in Kuala Lumpur from Malaysian Resources Corporation Berhad (MRCB) for MYR640 million (USD160 million).

The property, Menara Shell, also consists of a five-storey podium and a four-storey basement car park located on freehold land in KL Sentral. It features 557,053 square feet of net lettable area and, as of 25 March 2016, an occupancy rate of 99.9%.

Upon acquisition, MRCB-Quill REIT’s portfolio will increase to MYR2.27 billion from MYR1.63 billion as at 31 December 2015. The acquisition will be fully settled in cash via a combination of borrowings and proceeds that will be raised from a proposed placement of 406.67 million new units that will be offered to institutional investors.

In a statement on the acquisition carried by Malaysian media, chairman of the REIT's manager, Tan Sri Saw Choo Boon, has dismissed the soft market outlook for office properties, adding that he remains positive about the growth prospects of the REIT as it increases its footprint in KL Sentral. The REIT currently has a portfolio of ten commercial properties across Malaysia.

Units of MRCB-Quill REIt are currently trading up 0.86% higher from its previous close on the Bursa Malaysia at MYR1.17.