SINGAPORE - Quill Capita Trust, a real estate investment trust (Reit) partly owned by CapitaLand, has agreed to buy Platinum Sentral in Kuala Lumpur from MRCB Sentral Properties for 750 million ringgit (S$290.6 million).
The deal will double the trust's asset portfolio size to about 1.6 billion ringgit, it said on Friday.
Quill, which is listed in Malaysia and invests in Malaysia commercial properties, will pay for the freehold commercial development by issuing new shares and taking on more debt.
It will issue 206.25 million units to MRCB at 1.28 ringgit per unit for a total of 264 million ringgit. This will give MRCB a 31 per cent stake in Quill, which is changing its name to MRCB-Quill Reit.
To pay the balance 486 million ringgit in cash, the trust will also place out between 55 million and 85 million new units at a price to be determined later, and increase its borrowings.
Its gearing ratio is expected to rise from 36 per cent to 45 per cent after the acquisition is completed, it said.