Sime Darby Property buys Wisma Unirazak for RM160 million
Sime Darby Property Bhd has agreed to buy Wisma Unirazak on Jalan Tun Razak for RM160 million, the company said in a Bursa Malaysia filing on Wednesday.
Source: EdgeProp Malaysia · August 19, 2026 at 11:31 AM · AI-assisted report
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KUALA LUMPUR, 19 AUGUST 2026 —
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Sime Darby Property Bhd has agreed to buy Wisma Unirazak on Jalan Tun Razak for RM160 million, the company said in a Bursa Malaysia filing on Wednesday.
Market Impact
The freehold 15-storey office block sits on 5,922 sq m near the Ampang Park LRT-MRT interchange, about 1 km from KLCC. Sime Darby Property’s unit Sime Darby Property (KLGCC Resort) Sdn Bhd signed the sale and purchase agreement with Permodalan Nasional Bhd the same day it accepted a binding offer on July 6.
The purchase price was set on a willing-buyer willing-seller basis after an independent valuation of RM165.75 million as at March 17, 2026 by Raine & Horne International Zaki + Partners Sdn Bhd using the comparison method. The seller, PNB, acquired the asset in December 2009 for RM51.89 million including RM10.9 million of later capital injections, and carried it on its books at a net book value of RM39.97 million as at Dec 31, 2025.
Sime Darby Property plans to demolish the 47-year-old building and redevelop the site into a high-rise serviced apartment with commercial space targeting the premium residential segment. The project has a projected gross development value of RM900 million and is slated for launch in 2028, subject to approvals, with completion targeted within five years.
At the time of the July filing, Wisma Unirazak had a net lettable area of 10,282 sq m and was fully occupied. Universiti Tun Abdul Razak (Unirazak) leased 8,637 sq m, or 84% of the total area, and paid RM6.5 million in annual gross rental income as at Dec 31, 2025. Existing tenancies must terminate by Oct 31, 2027, and Sime Darby Property will collect rent from the completion date until then.
The acquisition is a related-party transaction because PNB is connected to Amanahraya Trustees Bhd-Amanah Saham Bumiputera, which held 32.7% of Sime Darby Property as at June 30, 2026. The deal still requires approval from the Ministry of Economy or a letter of no objection and is expected to close in Q4 2026.
The site sits within Kuala Lumpur’s Tun Razak Exchange corridor, which has seen steady demand for Grade-A offices and mixed-use schemes. Sime Darby Property’s move follows a wave of redevelopment along Jalan Tun Razak, where older blocks have traded at a widening premium to replacement cost.
Industry watchers say the price per square metre implied by the transaction—about RM14,980 per sq m of land—reflects the location’s scarcity premium and the premium segment’s appetite for serviced apartments near transit nodes. Comparable office sales in the vicinity have ranged from RM12,000 to RM15,000 per sq m of land in recent quarters, according to EdgeProp data.
The acquisition also underscores PNB’s strategy of monetising older assets to recycle capital into higher-yielding or mission-aligned investments. PNB has not disclosed its realised gain on the disposal.
For Sime Darby Property, the deal adds another prime site to its KL city-centre pipeline alongside its KL Gateway project in Jalan Tun Sambanthan and the upcoming 100 One City project in Bandar Tasik Selatan. The group said in July that the Wisma Unirazak redevelopment would be funded from internal cash flows and existing credit facilities, leaving gearing ratios broadly unchanged.
Related: Sime Darby · Bursa Malaysia · Kuala Lumpur