Malaysian property firm Titijaya Land has acquired a Telekom Malaysia office and exchange building in Kuala Lumpur.

Titijaya this week announced its wholly-owned subsidiaries Titijaya PMC Sdn Bhd and Titijaya South Asia Sdn. Bhd had entered into a Sale and Purchase Agreement with Menara ABS Berhad to acquire the building, known as Menara TM Semarak, for RM72 million ($15.85m).

The property features a 22-story purpose-built office building together with an annexed six-story Telekom Exchange on a piece of long-term leasehold land.

The 6,590 sqm (70,940 sq ft) site offers around 30,115 square meters (313,985 sq ft) of lettable area. The all-cash deal – financed by internally generated funds and/or bank borrowings – is set to close in Q3 2024.

“The group intends to acquire the property to lease and thus to provide the group with an additional form of income in addition to the income from its existing property development projects,” Titijaya said. “This proposed acquisition will potentially enable the group to generate additional income through obtaining rental income or leasing income from the existing tenants and potential tenants, as well as facilitate the entry into data center business.”

Menara ABS is a trust-owned special-purpose entity sponsored by Telekom Malaysia Berhad to facilitate the securitization of four of its properties – Menara TM, Menara Celcom, TM Taman Desa, and TM Cyberjaya – via a sale and leaseback or master ijarah [renter] arrangement.

The building was up for sale last year along with several other Telkom offices it was looking to vacate.

Sentral REIT acquired the Menara Celcom building from Malaysian Resources Corporation Bhd earlier this year.