Cuscapi buys commercial space at Empire City for RM20m

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KUALA LUMPUR (Oct 11): Cuscapi Bhd, which is currently operating from leased premises, is acquiring a commercial space at Empire City in Damansara Perdana for RM20 million.

The group said it is buying the space, located within the podium level below MyEG Tower, from Cosmopolitan Avenue Sdn Bhd, a unit of Mammoth Empire Holdings Sdn Bhd.

The 33,340 sq ft space  will be ready for occupation in 18 months, Cuscapi said in a filing with Bursa Malaysia.

“Cuscapi does not own any property and is currently leasing two levels of property from a third party,” the group said. “This proposed acquisition provides Cuscapi with space for future expansion and also represents an investment opportunity for the group to own the commercial space in a strategic location of a shopping mall at an attractive price.”

It added, however, that it has entered into a put option agreement with Cosmopolitan to obtain an option at Cuscapi’s sole discretion to sell the commercial space back to Cosmopolitan at a sum equal to 66.67% of the purchase consideration within six months from delivery of vacant possession.

Cuscapi said it intends to finance the acquisition through a mixture of internally-generated funds and bank borrowings.

The commercial space is at a shopping mall which is being developed as part of a 23-acre self-contained integrated mixed development. The completion rate of the building is at 55%, said Cuscapi.

Cosmopolitan’s directors are Datuk Cheah Joi Yong and Datuk Ng Yee Teck. Cheah is also the group executive director of Mammoth Empire Holdings.

Cuscapi’s shares fell three sen or 9.8% to 23 sen today, giving the group a market capitalisation of RM197.63 million.