Amanah REIT to acquire 2 assets for RM50 mln next year

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KUALA LUMPUR: AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) is looking to acquire two assets in the southern part of Peninsular Malaysia for a total of RM50 million next year.

Noorbaizura Hermeyney, Acting Principal Officer of the REIT’s manager AmanahRaya REIT Managers Sdn Bhd, said the two industrial assets have good yield of 6.5 per cent and would generate RM3.7 million income annually for the REIT.

“Following the acquisition of the assets by the end of this year or next year, the REIT’s total asset will amount to RM1.1 billion with cash reserve at RM60 million,” she told a press conference after the REIT’s extraordinary general meeting (EGM) here yesterday.

Noorbaizura said going forward, the REIT would continue to look into acquiring commercial assets with good governance and yield of about seven per cent.

She also said the company was looking at increasing its asset portfolio to RM1.5 billion in three years.

At the EGM held to obtain shareholders’ approval for the proposed disposal of the 15-storey Wisma Amanahraya for RM78 million, 52.7 per cent voted to pass the resolution.

On the 47.3 per cent who voted against the resolution, Independent Non-Executive Director Zulkifly Sulaiman said this was due to misperception about the transaction.

“Some shareholders thought we were selling the asset at a low price and that we were not planning to buy back the building but be rest assured, our intention is to redevelop the asset and enhance its value.

“We cannot develop properties as a REIT company, so we have to use a ‘brotherly’ company to do it and the value is subject to a licensed appraiser’s valuation, which will have to be approved by the Securities Commission before the transaction takes place,” he said.

In June, the REIT announced the proposed disposal of the building to Annex Sentral Sdn Bhd, which is wholly-owned by AmanahRaya Bhd.

Zulkifly said AmanahRaya REIT plans to repurchase the asset in two to three years’ time after the refurbishment exercise is completed. Under the sale and purchase agreement, the REIT has rights of first refusal to the property. — Bernama