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GIC Real Estate Pte Ltd (GIC RE), the real estate investment arm of GIC (Government of Singapore Investment Corporation), through a wholly-owned Malaysian subsidiary, Reco Shahzan (M) Sdn Bhd (RECO), signed an agreement to buy 70% of Menara Shahzan Insas from Insas Berhad for RM 98 million (S$ 45 million). This represents one of the first forays by international investors into the KL CBD office market since the Asian economic crisis.
Menara Shahzan Insas is currently 100% owned by Insas Berhad, a stockbroking firm listed on the KLSE. Insas will retain 30% of the building.
Pursuant to the Malaysian Code on Take-overs and Mergers, RECO will incur an obligation to extend a take-over offer for the 30% but will apply to the Malaysian Securities Commission for a waiver.
Built in 1989/90, the 40-storey building is located at the junction of the 2 main roads (Jalan Raja Chulan and Jalan Sultan Ismail) within the heart of the KL Golden Triangle CBD. The Menara Shahzan Insas marks GIC RE’s second investment into the Malaysian property market. Earlier this year, the global real estate firm concluded a RM 382 million deal to buy into a 25% stake in Sunway City Berhad and 48% stake in the Pyramid Mall.
As part of the plan to upgrade Menara Shazan Insas and reposition it as a prime Class A office property, both GIC RE and Insas Berhad plan to undertake a RM 30-50 million upgrading program.
Dr Seek Ngee Huat, President of GIC RE said, “GIC RE is a long-term investor, and this purchase is a significant addition to our portfolio of properties in South-East Asia, which is in general, and Malaysia in particular, showing signs of a sustainable recovery. Given its excellent location and following refurbishment, Menara Shahzan Insas will be a highly competitive, first class office building in Kuala Lumpur, equipped with state-of-the-art telecommunication facilites.”
The MD of Insas Berhad Dato’ Thong Kok Khee commented that ”We are very happy to enter into this relationship with GIC RE, a prestigious global real estate investor and hope to capitalise on their expertise to enhance the value of Menara Shahzan Insas.”
Dr Seek also reinterated GIC RE’s interest to further invest into the Malaysian commercial, residential and hotel sectors.
About GIC Real Estate
GIC Real Estate Pte Ltd (GIC RE) is a pre-eminent global real estate investment manager. The firm manages a multi-billion dollar portfolio of direct and indirect property investments worldwide. GIC RE is the real estate investment arm of GIC, a fund management company established in 1981 to manage the foreign reserves of Singapore by investing globally. Reflecting its global orientation, GIC RE operates out of offices in key financial centres around the world and is headquartered in Singapore.
For further information, please contact:
Mr Anthony Ang
Executive Vice President
Admin & Corporate Affairs
GIC Real Estate
Tel: 65 68896923
Ms Celeste Tay
Assistant Vice President
Admin & Corporate Affairs
GIC Real Estate
Tel: 65 68896893
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