Ewein Berhad is buying Menara IJM Land for RM50mil from IJM Properties Sdn Bhd, a subsidiary of IJM Land Berhad.
In its announcement to Bursa Malaysia yesterday, Ewein said the expected total gross income per annum from the renting of the units and car parks comprising Menara IJM Land was about RM4mil per annum.
“The proposed acquisition will widen and diversify the business activities as well as provide an additional recurrent regular income stream for the group,” according to the announcement.
Menara IJM Land, located on Lebuh Tunku Kudin, next to e-Gate commercial centre and Tesco hypermarket along the Tun Dr Lim Chong Eu Expressway in Penang, has a net lettable area of 94,413sq ft.
Of the total, 91,496sq ft is currently occupied, representing an occupancy rate of 97%.
Menara IJM Land, comprising a 16-storey building and a seven-storey car park, is located on a 46,823sq ft freehold site.
The acquisition is proposed to be funded through a combination of internally generated funds and bank borrowings.
The acquisition of the property is expected to be completed within three months from the unconditional date of the agreement as stated in the announcement.
Upon completion of the acquisition, Ewein will rent to the vendor the office units currently occupied by IJM Properties, as stated in the agreement, for a period of 10 years.