MENARA TM is being put up for sale as the Employees Provident Fund (EPF) is pushing for it to happen, claimed a report by Dagangnews.com.
“Its main investors are seeking to recoup their investments following the economic downturn triggered by COVID-19.
“Hence, the EPF, which has over 50% majority rights among the sukuk holders, pushed for the sale. However, Tabung Haji (TH) is trying to convince TM to remain as the buildings’ anchor tenant,” it stated.
Two days ago, New Straits Times reported that the entire Menara TM development in Lembah Pantai is up for sale at a price tag of RM700 mil.
The sale consists of the 55-storey Menara TM with helipad, an adjacent office building, a 92,431 sq ft convention centre, a multi-purpose hall, a sports complex, clinics and land.
A notice was put up recently stating that Menara TM was for sale by expression of interest (EOI). The closing date for the first stage of the sale is March 18 at 12 noon.
“Upon receiving proposals from interested parties in the first stage, there will be a due diligence and background check on the companies,” NST was reported as saying.
Apart from EPF and TH, Retirement Fund Incorporated (KWAP) is also a shareholder of Menara TM.
Touching on the matter, the report said that the priority of its main investors now; EPF, KWAP and TH is to recoup their investments so as to protect their contributors’ interest.
“With the sale, TM also can save a lot on costs. As stated by their own press release, its employees would be moved to other buildings owned by the organisation as part of its optimisation programme,” the reported quipped.
However, the report also insinuated that it was not all bed of roses when it came to the sale of Menara TM.
“It is unfortunate that the spirit of the deal was not followed. It leaves a bitter taste. Several investors rallied to TM’s call in its time of need but the favour was not returned,” a source told the media outlet.
Property industry moving south
Reminiscing the past, the report said that in 2007, the Government tasked TM to build Malaysia’s High-Speed Broadband (HSBB) infrastructure at RM15 bil, with Unifi being introduced to kickstart the project.
TM had to foot RM10 bil out of the total for the next 10 years. Hence, TM secured largest property securitisation project in 2008 to finance the massive undertaking.
“TM basically raised RM1 bil for investments and working capital by issuing sukuk bonds. Media reports then also said that EPF, KWAP and TH were asked to support it too.
“Under the deal, Menara TM and three other buildings were used a ‘security’ for the debt that was raised,” the report mentioned.
However, COVID-19 had upended the economy, affecting the property industry which was already grappling with oversupply problems.
For now, TM occupies 70% of the 92,000 sqf of the space, spanning 55 floors. – Feb 12, 2022
