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<\/center><\/p>\nSunway Clio Hotel will be leased to Sunway Resort Hotel Sdn. Bhd. (\u201cSRH\u201d) (\u201cLessee\u201d) pursuant to a hotel lease agreement (\u201cHLA\u201d) entered into between the Trustee, the Manager and SRH, for an initial term of ten (10) years with an option to renew by the Lessee for a further period of ten (10) years (\u201cRenewal Term\u201d). The HLA is backed by a guaranteed minimum rent which acts as a protection to safeguard the downside risk of the rental income with sharing on the upside of the income based on a rental formula.\u00a0<\/p>\n
The Trustee has also entered into a conditional car park tenancy agreement with Sunway Leisure Sdn. Bhd., a wholly-owned subsidiary of Sunway (\u201cTenant\u201d) for a period of three (3) years commencing from the date of completion of the Proposed Acquisition with an option to renew for a further term of 3 years. \u00a0<\/p>\n
In addition, Sunway City Sdn. Bhd. (\u201cSunCity\u201d), a wholly-owned subsidiary of Sunway and the holding company of the Vendor, Lessee and Tenant, is providing the Trustee a Guaranteed Net Property Income (\u201cNPI\u201d) of RM20.23 million per annum for a period of 4 years from the day of the completion date. In the event that there is any shortfall, SunCity shall pay the amount equivalent to the difference between the actual total annual NPI achieved and the Guaranteed NPI.\u00a0<\/p>\n
Sunway REIT\u2019s property value will increase by 7.0% from RM6.4 billion as at 30 June 2016 to RM6.9 billion upon the completion of Sunway REIT\u2019s recent acquisitions, namely Sunway Carnival Land (Purchase consideration: RM17.2 million), Sunway REIT Industrial-Shah Alam 1 (Purchase consideration: RM91.5 million) and the said Proposed Acquisition.\u00a0<\/p>\n
The Proposed Acquisition will be fully funded by its existing debt programme. The Proposed Acquisition is not expected to have any material effect on the earnings and distribution per unit (\u201cDPU\u201d) of Sunway REIT for the financial year ending 30 June 2018. Nevertheless, the Proposed Acquisition is expected to contribute positively to the future earnings and DPU of Sunway REIT as well as yield accretive to the assets portfolio. \u00a0<\/p>\n
Datuk\u2019 Jeffrey Ng, CEO of Sunway REIT Management Sdn. Bhd., said, \u201cThe acquisition will further strengthen Sunway REIT\u2019s diversified assets portfolio and capitalise on the business synergies in Sunway City. \u00a0We will be able to offer a complete suite of hotels ranging from 4-star to 5-star hotels within the same vicinity. The retail podium forms the enlarged Sunway Pyramid Mall through the direct connectivity at the West precinct of the mall and just a stone\u2019s throw away from the multi-award winning Sunway Lagoon. We are confident that the tremendous business synergies within the township coupled with an experienced hotel operator and Facilities Management team will maximise the performance of the property.\u201d\u00a0<\/p>\n
He added, \u201cThe property is expected to record healthy growth over the longer term horizon supported by the strong catchment in the township. The township welcomes 42 million visitations annually and the number is still growing. Sunway City remains as one of Southeast Asia\u2019s most preferred tourist destinations.\u00a0<\/p>\n
\u201cUpon completion of the Proposed Acquisition, Sunway REIT will have a total rooms inventory of more than 1,400 rooms in Sunway City. We are increasing our marketing efforts to promote our portfolio of hotels in Sunway City to attract more tourists from new markets in the Middle East and other parts of Asia. We believe the \u00a0Proposed Acquisition is timely to cater to the higher rooms inventory to capture a larger market share.\u201d<\/p>\n
He further elaborated, \u201cSunway REIT\u2019s assets will increase to 16 properties upon the completion of the Proposed Acquisition and reinforces its position as the second largest REIT in Malaysia with a combined property value of RM6.9 billion.\u201d<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Sunway REIT Management Sdn. Bhd., the Manager of Sunway Real Estate Investment Trust announced that RHB Trustees Berhad, as trustee of Sunway REIT (Trustee), has entered into a conditional sale and purchase agreement (SPA) with Sunway Forum Hotel Sdn. Bhd. (Vendor), a wholly-owned subsidiary of Sunway Bhd for the proposed acquisition of Sunway Clio Property […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-837","post","type-post","status-publish","format-standard","hentry","category-corporate"],"_links":{"self":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/837","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/comments?post=837"}],"version-history":[{"count":1,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/837\/revisions"}],"predecessor-version":[{"id":6241,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/posts\/837\/revisions\/6241"}],"wp:attachment":[{"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/media?parent=837"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/categories?post=837"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/malaysian-business.com\/portal\/wp-json\/wp\/v2\/tags?post=837"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}