AmanahRaya REIT to buy two assets for RM50mil next year

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

Acting principal officer of AmanahRaya REIT Managers Sdn Bhd, the Reit's manager, Noorbaizura Hermeyney, said the two industrial assets have good yield of 6.5% and would generate RM3.7 million in income annually for the Reit.

"Following the acquisition of the assets by the end of this year or next, the Reit's total assets will amount to RM1.1 billion with cash reserves at RM60 million," she told a press conference after AmanahRaya REIT's EGM in Kuala Lumpur on Thursday.

Noorbaizura said going forward, the Reit would continue to look at acquiring commercial assets with good governance and yield of about 7%.

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% voted in favour of the resolution.

On the 47.3% 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 a refurbishment is completed. Under the sale and purchase agreement, the Reit has the first of refusal on the property. - Bernama