Putra Place finally sold for RM514m
By Vasantha Ganesan Published: 2011/03/31
http://www.btimes.com.my/articles/hamputra/Article/

http://www.btimes.com.my/articles/hamputra/pix_middle

The Putra Place in Kuala Lumpur has finally been sold to OSK Trustee Bhd for RM513.95 million, some three years after the property was first put up for auction.

The auction, held yesterday, is believed to be the largest public auction in Malaysia.

Sources said OSK Trustee may have bought the property on behalf of one of the real estate investment trusts (REIT).

Among OSK's clients, speculation is that Sunway REIT is the buyer. Sunway REIT's chief executive officer Datuk Jeffrey Ng Tiong Lip did not answer calls from Business Times.

This move is not surprising as Sunway REIT manages malls, hotels and offices. Putra Place encompasses The Mall shopping complex, the Legend Hotel and an office tower.

This purchase will also strengthen Sunway REIT's position as Malaysia's largest trust.

Commerce International Merchant Bankers Bhd (CIMB) put the property up for auction to recover loans given to property owner, Metroplex Holdings Sdn Bhd.

CIMB's counsel, Alan Gomez of Tommy Thomas Advocate & Solicitors, when contacted by Business Times said: "We confirm the successful auction of this property at the reserve price. The successful bidder was OSK Trustee Bhd."

Gomez said OSK has placed a 10 per cent deposit and now has 120 days to complete the purchase.

"The amount outstanding to the first chargee (CIMB) is in the region of RM140 million," he added.

The second chargee Aseambankers Malaysia Bhd is said to be owed a substantial amount.

Over the years, the auction price of the property was reduced thrice, as no bids were received.

The property was first auctioned in April 2008 and the price was then set at RM705 million. The latest reserve value was RM513.95 million.

The Mall comprises eight levels of podium retail/shopping units. The Putra Place office tower covers the tenth floor to the 33rd, while the 25-storey Legend Hotel includes serviced apartments and penthouses. It is located on Jalan Putra opposite the Putra World Trade Centre.

The freehold property, with 193,621 sq ft space, has 1,323 parking bays.

Sunway REIT plans major Putra Place renovation
Published: 2011/04/01
http://www.btimes.com.my/Current_News/BTIMES/articles/sunway31-2/Article/index_html

Sunway Real Estate Investment Trust (Sunway REIT) (5176) has bought The Putra Place in a public auction for RM513.95 million, confirming a Business Times report yesterday.

Sunway REIT said the deal will provide geographical diversification and enlarge its portfolio of properties.

Sunway REIT Management Sdn Bhd, the manager for Sunway REIT, is planning a major renovation of the property under a turnaround exercise.

"Upon completion of this turnaround exercise, the manager believes that the property will enjoy upside on capital appreciation as well as improved yield," it said.

SunREIT to give Putra Place a facelift
By EDY SARIF Monday April 4, 2011
http://biz.thestar.com.my/news/story.asp?file=/2011/4/4/business/8399538&sec=business

Financial details will only be revealed after deal is completed

PETALING JAYA: Sunway Real Estate Investment Trust (SunREIT) acquisition of Putra Place in Kuala Lumpur for RM519.95mil will likely lead to an overhaul of the property with analysts saying the property might not make an immediate bump in SunREIT's earnings.

AmResearch in its report on Friday said SunREIT planned to undertake a major renovation exercise on Putra Place to enhance the property.

“The new management may terminate the contract with the current operator of the Legend Hotel and take over running of the hotel or it would tie-up with a global operator,” it said.

It added that while SunREIT has a commendable track record, especially in managing retail assets such as Sunway Pyramid, it remained to be seen if SunREIT would be able to turn Putra Place around.

“The property needs a strong pull-factor to get a decent visitor traffic as the location, although in the city, is not too favourable,” it said.

Putra Place encompasses The Mall shopping complex, the Legend Hotel and an office tower.

The purchase will also strengthen Sunway REIT's position as Malaysia's largest trust.

JPMorgan Securities (M) Sdn Bhd said the management of the real estate investment trust would only release details on profitability and acquisition yield of the property once the deal was completed.

“The group stated that this is an asset with turnaround potential but some renovation works needed to be done. We believe that this has been a low yielding assets and hence not likely to be making earnings immediately, ” it said in a report.

The real estate investment trust, a 36.7% owned associate of Sunway City Bhd, won the bid at an auction held on Wednesday through its trustee OSK Trustees Bhd.

It has 120 days to complete the purchase.

Commerce International Merchant Bankers Bhd (CIMB) put the property up for auction to recover loans given to property owner, Metroplex Holdings Sdn Bhd.

The auction price of the property was reduced thrice as no bids were received.

The property was first auctioned in April 2008 and the price was then set at RM705mil. The latest reserve value was RM513.95mil.

The Mall comprises eight levels of podium retail/shopping units. The Putra Place office tower starts from the 10th to the 33rd floor, while the 25-storey Legend Hotel includes serviced apartments and penthouses. It is located on Jalan Putra opposite the Putra World Trade Centre. The freehold property, with 193,621 sq ft space, has 1,323 parking bay.

SunREIT told Bursa Malaysia on Thursday that it aimed to provide the unit holders with exposure to a diverse portfolio of authorised investments that will provide stable cash distributions with the potential for sustainable growth.

“This involves selectively acquiring properties that meet investment criteria that will provide attractive cash flows and yields, as well as opportunities for further revenue growth through asset enhancement,” it said, adding that it saw enhancement and turnaround opportunities for the property and planned to undertake major renovation works.

It believed that the property will enjoy upside on capital appreciation as well as improved yield.

The Mall & The Legend Hotel
http://farm3.static.flickr.com/2221/2152253792_4295643b7c_z.jpg?zz=1
http://www.flickr.com/photos/nurbsplanet/2152253792/
http://farm3.static.flickr.com/2282/2152188456_c199c91dc4_z.jpg?zz=1
http://www.flickr.com/photos/nurbsplanet/2152188456/

http://www.panoramio.com/photo/21576315

SunREIT to double the value of Putra Place
Written by E Jacqui Chan Friday, 01 July 2011 11:06
http://www.theedgemalaysia.com/property/189019-sunreit-to-double-the-value-of-putra-place.html

http://www.theedgemalaysia.com/images/stories/FinancialDaily/2011/July/01072011/20110630_peo_r-tan-sri-dr.jpg
Cheah (right) says SunREIT has acquired Putra Place
as it is deemed a yield-accretive asset.

KUALA LUMPUR: Sunway REIT Management Sdn Bhd, the manager of Sunway Real Estate Investment Trust (SunREIT), expects to increase the value of Putra Place to more than RM1 billion after refurbishment and rebranding exercises

SunREIT acquired Putra Place in Jalan Putra, Kuala Lumpur after it won a bid in a public auction in April this year for RM513.95 million. The property, which comprises a shopping mall, a hotel and an office tower, was valued at RM523 million — the mall at RM224 million, the office tower at RM81 million and the hotel at RM218 million.

“SunREIT had acquired Putra Place as it was deemed a yield-accretive asset that meets our investment criteria to benefit our unit holders,” said Tan Sri Jeffrey Cheah, founder and chairman of the Sunway Group during a media briefing yesterday.

The property will be renamed Sunway Putra Place, of which the three components will be known as Sunway Putra Hotel, Sunway Putra Tower and Sunway Putra Mall.

Addressing the issue of the existing tenants, David Lingam from David Lingam & Co, its legal counsel for the case said, “Even though we are not legally bound to the tenancies, we have taken a humane approach to the matter. We have written to the tenants inviting them to discuss the matter with us.”

He added that SunREIT has offered to enter into fresh tenancies for the duration of the unexpired portion of the previous tenancies at the same rental rate, and are willing to waive the requirement to pay deposit.

“We will also give them a three months’ notice period in the event that we need to take possession of the property for the purpose of refurbishment. A majority of the tenants have responded positively but a few have taken us to court,” said David.

SunREIT has been involved in a legal tussle with the previous owner Metroplex Holdings Sdn Bhd since its acquisition in April, which saw three lawsuits filed against SunREIT by Metroplex to nullify the sale of Putra Place. In one of the cases, Metroplex has sought interim injunctions pending the final decision but the High Court has refused to grant these interim injunctions on the basis that SunREIT is the owner of the property. On June 28, SunREIT obtained a court declaration that it is the rightful owner. The High Court has ordered Metroplex to deliver possession at noon today.

Cheah expressed his surprise at the lawsuits, saying the acquisition was done according to law and the full purchase price paid, and the title registered at the Kuala Lumpur land registry on April 19.

“While we are keen to immediately start working on the turnaround exercise following the full payment of the purchase price in the interest of fulfilling our responsibility to SunREIT’s unit holders, we had also taken every step to ensure that we follow the proper legal procedures and have ensured full compliance of all rules and regulations, from the time of the public auction, while dealing with the court cases to establish legal ownership and to rightfully gain possession of the property,”said Cheah.

Meanwhile, Datuk Jeffrey Ng, CEO of Sunway REIT Management expects a period of nine to 12 months to study and refurbish the property accordingly.

He revealed that the mall currently enjoyed an occupancy rate of 80%, and the office tower is almost fully occupied while the hotel runs at an average 60% occupancy.

“We have every interest to ensure that the transition occurs with minimal disruption while ensuring the well-being of all visitors, tenants and management. The High Court’s recent declaration and rejection of the interim measures taken by the previous owner to challenge the sale, further clarifies our legal ownership and we hope that all the stakeholders involved, including the tenants, will be clear on the ownership status and cooperate with us to ensure a smooth transition, which I trust will be to our mutual benefit,” said Cheah.

putra place not lowrise building lah.....

It looks like we have to wait a little more while before any upgrade takes place... Metroplex has succeeded in obtaining another injunction to stop Sunway from gaining possession of the complex

I don't really understand what's going on here ? who's actually the owner right now ? didn't sunway make a successful bid for the property on auction ?

Hopefully renovation works can start soon... last week, the court has ruled the auction as legal and Sunway is the rightful owner

Sunway Putra Mall refurbishment starts in 2013 for 15 to 18 months and will involve RM200million .

shops at the mall will be closed 14 May 2013 for renovation. many shops are having clearance sale.

do they refurbish legend hotel too???