MRCB-Quill REIT's Menara Shell in KL Sentral (Photo: MRCB-Quill REIT)MRCB-Quill REIT's Menara Shell in KL Sentral (Photo: MRCB-Quill REIT)

Unitholders of MRCB-Quill REIT have approved the proposed acquisition of Menara Shell for MYR640 million (USD145 million).

The approval was secured at an Extraordinary General Meeting (EGM) that was held on 7 December, to seek majority mandate for the proposed acquisition, the Malaysia-listed REIT announced on the same day.

MRCB-Quill REIT first announced in mid-2016 that it proposing to acquire the 33-storey office tower in Kuala Lumpur from Malaysian Resources Corporation Berhad (MRCB).

The development also includes a five-storey podium,a four-storey basement car park, and features, 557,053 square feet of net lettable area.

The property currently has an occupancy rate of 99.9%.

Also approved during the EGM was a resolution to place up to 406,666,667 new units in the REIT to selected investors, at an issue price that will be determined at a later date.

Upon completion, the acquisition is expected to expand MRCB-Quill REIT’s asset portfolio size from MYR1.63 billion as at 31 December 2015 to approximately MYR2.27 billion.

“As a result, MRCB-Quill REIT’s position will rise from the current 8th to become the 6th largest among the listed REITs in Malaysia”, it said in a statement on the AGM.

Units of MRCB-Quill REIT last changed hands on the Bursa Malaysia at MYR1.27.

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.