KUALA LUMPUR: Genting Malaysia Bhd (formerly Resorts World Bhd) has entered into two related party transactions with its parent Genting Bhd by proposing to buy two companies and their properties, for a total of RM228.64 million.

Genting Malaysia said on Tuesday, Dec 8 it was buying 100% of Oakwood Sdn Bhd for RM212.71 million cash consideration and 100% of Genting Highlands Tours and Promotion Sdn Bhd (GHTP) for RM15.93 million. Genting Bhd owns 48.65% of Genting Malaysia.

Oakwood owns the 25-storey Wisma Genting in Kuala Lumpur while GHTP owns two parcels of land in Segambut, Kuala Lumpur.

Genting Malaysia, as the largest single tenant, occupies eight floors and two basement levels in Wisma Genting for a total annual rental of RM3 million. The first acquisition will thus enable Genting Malaysia to reduce its annual rental expenses at the consolidated level.

"In addition, Genting Malaysia will earn an annual rental income of approximately RM17.3 million from the other tenants of Wisma Genting, who will provide a source of sustained recurring income and long term value for the property," it said.

As for the acquisition of the Segambut land, which Genting Malaysia is using as a storage area and depot for its buses and limousines, it will reduce its rental expenses at the consolidated level by about RM300,000 annually.

"In addition, there is potential for the Segambut land to be developed and improved upon, either for Genting Malaysia’s use or for other future purposes," it said.