UOA REIT share price up 4.2% on Wisma UOA Pantai disposal
11 Jun 2018 / 11:00 H.
PETALING JAYA: UOA Real Estate Investment Trust's (UOA REIT) share price rose 4.2% this morning on news that it is disposing of Wisma UOA Pantai to CIMB Bank Bhd for RM120 million.
At 10.41am, UOA REIT stood at RM1.49 on 2,500 shares done.
UOA REIT said the net capital gain arising from the disposal is estimated to be RM541,000 after taking into account all related expenses, according to its filing with Bursa Malaysia. The disposal proceeds will be utilised to reduce existing bank borrowings.
As the building was operating at a low occupancy rate, it said the disposal is in line with the objective of maximising returns to UOA REIT unitholders. As at April 2018, its occupancy rate only stood at 19%.