Fitters Diversified to redevelop Plaza Pekeliling into a SOHO concept building

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KUALA LUMPUR (March 4): Property developer Fitters Diversified Bhd intends to redevelop the 2.3-acre Plaza Pekeliling along Jalan Tun Razak here into a small office/home office (SOHO) concept building.

In a press statement today, Fitters (fundamental: 1.3; valuation: 1.8) said its wholly-owned subsidiary Fitters Building Services Sdn Bhd has signed a sales and purchase agreement (SPA) with GCP Tower to purchase the freehold property, which comes with 70 parcels of office lots and 363 units of car park bays, for RM28.28 million.

GCP Tower Sdn Bhd is a wholly-owned unit of Global Carriers Bhd.

According to the group, the 33 year-old property has a built-up area of 290,798 sq ft, with a net lettable area of 144,376 sq ft.

The purchase consideration, it said, will be satisfied via internally-generated funds and bank borrowings.

Fitters Diversified managing director Datuk Richard Wong said as a niche developer, the group is pleased to have the opportunity to develop another project in a strategic location.

“Our experience in developing Zetapark City at Setapak comes in handy in this new development, which we hope to create SOHO products for the value-discerning consumers.”

The proposed acquisition, while not subject to Fitters Diversified shareholders' approval, will need to procure the approval of the Economic Planning Unit of the Prime Minister's Department, the group said.

Meanwhile, in its filing to Bursa Malaysia today on the Plaza Pekeliling acquisition, Fitters Diversified noted that the deal is targeted to be completed within six months of the SPA.

It also noted the redevelopment is expected to contribute positively to the future earnings of the group.

Fitters Diversified closed up 1.5 sen today at 65.5 sen, giving it a market capitalisation of RM307.37 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)