The Store Corp Bhd to acquire 10,603 sq metres leasehold land together with a multi-storey commercial building known as Kompleks Sungai Buloh for RM 68.5 million

The Store Corp Bhd's wholly-owned subsidiary, The Store (Malaysia) Sdn Bhd (TSM), is acquiring a piece of property in Shah Alam for RM68.5 million.

In a filing to Bursa Malaysia, the company said the property, located in Sungai Buloh, comprised a leasehold land measuring 10,603 sq metres together with a multi-storey commercial building known as Kompleks Sungai Buloh.

"The proposed acquisition will provide a stable stream of rental income as well as provide synergy to the group," it said, adding the property has an open market value of RM72 million.

TSM is the anchor tenant, occupying some 43 per cent of total lettable area of the complex, which has an occupancy rate of about 95 per cent.

Upon completion of the proposed acquisition, The Store group will have an enlarged asset base, which will place it on a stronger financial footing and allow it to further tap into the capital and debt markets to realise its fund-raising potential to finance future expansion plans.

The proposed acquisition is not expected to have any material effect on the earnings of The Store Group for the financial year ending Sept 30,2012, however it is expected to enhance the group's future earnings.

The exercise is expected to be completed by year-end. -- Bernama

Source: www.btimes.com.my