TWRREIT ... Jan10

Tower Real Estate Investment Trust will post a RM5.8 million surplus from the revaluation of its three prime land commercial properties.

These include the 32-storey Menara HLA in Jalan Kia Peng and HP Towers, which comprise two blocks of nine and 21 storeys each, in Jalan Gelenggang within the Bukit Damansara enclave. Tower had also revalued its 20-storey Menara ING, which is situated in Jalan Raja Chulan.

The purpose of the revaluation was to ascertain the current market values of Menara HLA, HP Towers and Menara ING for accounting purposes in line with the Financial Reporting Standard (FRS) 140. Under the fair value model of FRS 140, the fair value of the investment property shall reflect market conditions at the balance sheet date.

Following the revaluation which was undertaken last month (December 2009), Menara HLA now has a market value of RM295 million, a surplus of RM4.9 million on top of the commercial entity's RM290.13 million net book value as at Nov 30 2009.

Menara ING registered an almost RM0.9 million surplus, resulting in a market value of RM94 million compared with its NBV of RM93.1 million. HP Towers which is worth RM207 million, however, saw no change to its market value.
Based on Tower's latest unaudited quarterly financial statement as at Sept 30, 2009, its net asset value per unit of RM1.5994 will increase to RM1.6196 upon incorporation of the revaluation surplus of RM5.8 million.