Sunway Pyramid Shopping Mall is the single most expensive asset under Sunway REIT.
KUALA LUMPUR: Sunway Real Estate Investment Trust
(SunREIT) has acquired its first industrial property -- a 15.5-acre industrial land in Section 23, Shah Alam, including buildings erected on it -- for RM91.5mil.
Sunway REIT Management Sdn Bhd, the manager for the retail-focused REIT, told Bursa Malaysia that SunREIt’s trustee RHB Trustees had signed a conditional agreement with owner Champion Edge Sdn Bhd for that purpose on Wednesday.
The property, which includes factories, offices and warehouses, is sold together with and subject to an existing lease. The lessee is pharmaceutical product manufacturer IDS Manufacturing Sdn Bhd.
The lease has a remaining duration of about 18 years, expiring on Dec 31, 2034. The current annual lease rental is RM5.6mil on a triple net lease basis (the lessee is required to pay all costs and outgoings in relation to the property, including repairs, taxes ad insurance).
SunREIT, whose portfolio consists of four retail malls, five hotels, four offices and a medical centre, said the proposed acquisition was in line with the key investment objective to acquire and invest in properties that are yield accretive with the potential to contribute to the long-term growth in SunREIT’s distribution per unit and/or net asset value per unit.
SunREIT’s property portfolio size will increase from about RM6.43bil as at June 30, 2016, to RM6.52bil after the proposed acquisition.