PETALING JAYA (July 6, 2026): Sime Darby Property Bhd has accepted a binding offer to acquire Wisma Unirazak, a 15-storey freehold office building along Jalan Tun Razak in Kuala Lumpur, for RM160 million, marking another strategic move under its SHIFT32 transformation plan.
The acquisition is carried out via Sime Darby Property (KLGCC Resort) Sdn Bhd and involves a related-party transaction with Permodalan Nasional Bhd (PNB), a major institutional shareholder connection through Amanah Saham Bumiputera’s trustee structure.
Prime Jalan Tun Razak asset with stable income
Wisma Unirazak sits on a 5,922.4 sq m freehold parcel in Bandar Kuala Lumpur, with a net lettable area of 110,669 sq ft. As of end-2025, the building was fully occupied, with Universiti Tun Abdul Razak (Unirazak) as the anchor tenant, occupying around 84% of the space.
The property generates about RM6.5 million in annual gross income, with existing tenancies extending until 31 October 2027. After that, tenants are required to vacate to enable redevelopment.
PNB originally acquired the building in 2009 for RM51.89 million and invested an additional RM10.9 million over time. The latest audited net book value stands at RM39.97 million.
Valuation supports deal pricing
An independent valuation conducted in March 2026 by Raine & Horne International Zaki + Partners valued the property at RM165.75 million, slightly above the agreed purchase price of RM160 million. The acquisition is therefore broadly in line with market valuation, based on comparable transactions in the surrounding KLCC corridor.
Payment structure and conditions
The deal is structured with a 10% deposit (RM16 million), split into RM3.2 million earnest deposit and RM12.8 million upon signing the SPA. The remaining 90% balance is payable within three months after the SPA becomes unconditional, with a possible one-month extension subject to interest charges.
Completion is subject to regulatory approvals, including a letter of no objection from the Ministry of Economy, and full termination or novation of existing leases to ensure vacant possession by October 2027.
Redevelopment into RM900 million mixed-use project
Sime Darby Property plans to redevelop Wisma Unirazak into a high-rise serviced apartment project with supporting commercial components targeting the premium residential market.
The proposed gross development value (GDV) is estimated at approximately RM900 million. The project is located within the Jalan Tun Razak–KLCC corridor, about 1 km from KLCC and near the Ampang Park LRT/MRT interchange, a key transit-oriented growth zone.
Subject to approvals, the project is expected to be launched in 2028 and completed within five years of launch.
Funding outlook and strategic impact
The acquisition will be funded through a mix of internally generated funds and borrowings. While it is not expected to materially impact earnings or net assets in FY2026, gearing is expected to increase.
The board views the acquisition as strategically aligned with long-term growth objectives, with the audit committee stating that the deal is fair, reasonable, and in the best interest of shareholders.
Key Takeaways (What I Learned)
A prime KL office asset is being repositioned from commercial office use into high-rise residential and mixed-use redevelopment.
Location near KLCC and major transit nodes significantly increases redevelopment potential and GDV uplift.
Acquisition price (RM160 million) is close to independent valuation (RM165.75 million), suggesting market-aligned pricing.
Anchor tenant (university) provides stable income until redevelopment timeline begins in 2027.
Strategy shows continued trend of office-to-residential conversion in Kuala Lumpur’s core CBD corridors.
Expected GDV of RM900 million highlights strong redevelopment upside versus acquisition cost.
Deal structure includes regulatory approvals and lease termination conditions before redevelopment can proceed.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 6 Jul 26
Malaysia