Citaglobal Bhd Acquires Prime Jalan Tun Razak Land for RM73 Million
Citaglobal Bhd (KL:CITAGLB) has entered into an agreement to acquire a 1.58-acre commercial land along Jalan Tun Razak from Bank Islam Malaysia Bhd (KL:BIMB) for RM73 million, reinforcing its strategic expansion within Kuala Lumpur’s prime commercial district.
The acquisition is seen as a long-term value creation move, capitalizing on the increasing scarcity of well-located commercial land in the city.
“The land’s strategic location, high visibility, and excellent accessibility—fronting the main road of Jalan Tun Razak—along with its strong connectivity to public transport infrastructure, make it a highly desirable address in Kuala Lumpur,” Citaglobal stated in its Bursa Malaysia filing.
Strategic Location with High Investment Potential
The acquired site is surrounded by several prominent landmarks, including:
- Prince Court Medical Centre
- Hospital Kuala Lumpur
- National Heart Institute (IJN)
- Double Tree by Hilton Hotel
Given its proximity to key commercial and healthcare institutions, the site holds strong potential for high-value commercial development.
Additionally, the land has been leased to TJM Sdn Bhd since August 2019, though details of the tenancy agreement were not disclosed in the filing.
Funding and Valuation Details
Citaglobal will finance the RM73 million purchase through a combination of:
- Internally generated funds
- Bank borrowings
The purchase price was determined based on independent valuations by:
- Intra Harta Consultants Sdn Bhd (appointed by Citaglobal)
- CBRE | WTW (appointed by Bank Islam)
However, the valuation figures were not disclosed in the Bursa filing.
Citaglobal’s Market Position and Growth Strategy
Citaglobal, a player in the energy and construction sector, is actively expanding its real estate footprint in high-value locations. This acquisition aligns with the group’s long-term strategy of securing premium commercial land in Kuala Lumpur.
Following the announcement, Citaglobal’s share price increased by one sen or 1.19%, closing at 85 sen, valuing the company at RM361.65 million.
This transaction positions Citaglobal for potential future developments in one of Kuala Lumpur’s most sought-after commercial corridors, reinforcing its growth trajectory in the property and infrastructure sector.
