AmFirst REIT sells AmBank Group Leadership Centre for RM36mil

Menara Ambank is one of the tall buildings that tower over the road.

KUALA LUMPUR: Am ARA REIT Managers Sdn Bhd, the manager of AmFirst Real Estate Investment Trust (REIT), has sold off the 13-storey AmBank Group Leadership Centre, located within walking distance from the KL Tower, for RM36mil in cash.

AmFirst REIT told Bursa Malaysia that the 25-year-old office building, with a net book value of RM22.9mil as at March 31, was sold to Techvance Properties Management Sdn Bhd for a net gain of about RM8.4mil (after real property gains tax).

The freehold property, located on 1,428 sq m at Jalan Puncak, was originally acquired in December 2006 for RM19.06mil.

AmFirst REIT said the proposed disposal enabled the trust to realise its investment in the property at an attractive price considering its age and limited scope for growth on the asset value based on current use of the property.

“The proposed disposal will also provide the trust with greater financial flexibility to explore potential future acquisitions which are more yield accretive,” it added.

Am ARA REIT Managers intends to distribute the realised net gain, after deducting all fees and expenses relating to the proposed disposal, to unitholders as income distribution.

It said the balance proceeds would be used to repay existing bank borrowing and thus reducing the gearing to provide additional headroom for future acquisition.

AmFirst REIT units closed unchanged at 74 sen on Tuesday.