KUALA LUMPUR: Atrium REIT, slated as the country’s first industrial asset-focused real estate investment trust (REIT), aims to have assets with a net lettable area of one million sq ft within two years.
The four warehouse properties - worth some RM154mil - that it plans to inject into the REIT on listing in the first quarter of next year have a net lettable area of 809,000 sq ft.
The target was achievable, said Atrium REIT Managers Sdn Bhd chief executive officer Wong Sui Ee, as a 20,252 sq m warehouse in China had been recently completed and would be injected into the REIT, pending the finalisation of details on the repatriation of earnings.
Property developer Glory Blitz Industries Sdn Bhd, which holds 60% stake in Atrium REIT Managers, owns the China warehouse that is worth RM42mil.
“We have also recently signed a deal with a Swiss logistics company to build a 230,000 sq ft warehouse, with a value of RM45mil, in Bukit Jelutong, Shah Alam,” Wong told reporters after Atrium REIT Managers’ underwriting agreement signing with Aseambankers Malaysia Bhd yesterday.
The company was also in talks with another foreign logistics firm to build a warehouse of similar size in the same area, she said, adding that all these potential asset injections would be subject to Securities Commission approval.
For the longer term, the management intended to increase the size of the net lettable area under the REIT’s management to 2 million sq ft over a five-year period, said Atrium REIT Managers executive director John KH Lim.
Atrium REIT has an approved initial fund size of 121.801 million units, comprising 1,000 promoters’ units, 75.5 million units for public offering and 46.3 million units to be held by vendors Glory Blitz Industries and Sparkle Skyline Sdn Bhd.
After the exercise, the vendors will collectively own 38% of the REIT units.
Aseambankers is adviser, managing underwriter and sole bookrunner for the listing exercise and BHLB Trustee Bhd is the trustee of Atrium REIT.
On future prospects, Wong said Glory Blitz was seeing increasing interest in the logistics industry in Malaysia, especially from foreign logistics companies keen to leverage on the country’s strategic geographical location in the region.
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