PETALING JAYA: Berjaya Assets Bhd (BAssets) wholly owned subsidiary Berjaya Times Square Sdn Bhd (BTS) today entered into an agreement with Extreme Broadband Sdn Bhd (EBSB) for the proposed arrangement to lease out 42 untenanted office units in Menara MSC Cyberport, Johor Baru by BTS to EBSB for a period of three years commencing from Aug 1, 2022 until July 31, 2025 for a total monthly rental of RM250,000 cash; and the proposed granting of an option to EBSB to purchase from BTS a total of 72 office units in Menara MSC Cyberport at any time during the tenancy term for RM69.61 million cash.
Menara MSC Cyberport is a 30-storey office tower block built in year 1998. Currently, 30 units (out of the 72 units) of the property are tenanted whilst the balance 42 units, namely the rental property with a lettable area measuring in total of about 166,196 sq ft, will be tenanted by EBSB pursuant to the proposed leasing.
In the event EBSB exercises the option to purchase, all rights, title and interest in and under the unexpired existing tenancy shall be assigned to EBSB upon and subject to the completion of a new sale and purchase agreement to be entered into between BTS and EBSB.
As at March 31, 2022, the property has a net carrying amount of about RM105.73 million in the books of BTS.
“The proposed leasing will provide additional cashflows in the form of rental income to the BAssets group whilst the proposed option represents an opportunity for BTS to unlock the value of the property,” BAssets told the stock exchange.
