Menara Citibank back on sale

Menara Citibank is back up for sale now that IOI Corp Bhd has called off its purchase for RM586.73 million, said agent Regroup Associates Sdn Bhd.

"Interested parties with a strong financial background can make an offer as the seller is still willing to consider a good offer," Regroup Associates executive director Paul Khong told Business Times yesterday.

However, Khong said it would not be possible to complete the sale of the building by the end of this year as deals of such nature take a few months to complete.

"The timeframe depends on how quickly the parties come to an agreement on the terms of the deal and sign the SPA (sale and purchase agreement), which will then be subject to the FIC approval," he said, adding that this could take up to six months.
While Khong was unable to comment on which parties have expressed interests, he said there were many enquiries on the building as it was still an attractive income-yielding asset.

"Menara Citibank is a Grade A office building with good tenants, who will not look to move out in a slowing economy," he said, adding that the exclusive agent for the deal was CB Richard Ellis Singapore.

IOI backed out of the deal on Thursday, forfeiting its RM73.36 million deposit paid to Inverfin Sdn Bhd, citing concerns over the economy.

Inverfin is 50 per cent owned by Menara Citi Holding Co Sdn Bhd, a unit of US bank Citigroup. Singapore's CapitaLand Ltd holds another 30 per cent, while Amsteel Corp Bhd owns the rest.

In August, Business Times reported that IOI Corp Bhd, a private equity fund and a Korean fund were short-listed as bidders for the building.

Menara Citibank has a net lettable area of 733,626 sq ft and a 99 per cent occupancy rate.

The net book value of the building as of December 31 last year was RM458 million and the gross rental revenue was RM43.3 million (excluding the revenue from the car-park of RM3.3 million).

By Business Times (by Jeeva Arulampalam)