KUALA LUMPUR: Atrium REIT, Malaysia's first industrial asset-focused real estate investment trust (REIT), plans to increase the net lettable area (NLA) of its properties to one million sq ft from 809,668 now.
It also aims to achieve 1.6 million sq ft of NLA by 2012, mainly through the acquisition of industrial properties in prime locations locally and abroad.
The trust is managed by Atrium REIT Managers Sdn Bhd.
Atrium REIT Managers chairman Zakaria Meranun said that based on current negotiations on potential projects, the targets could be met earlier. “We are optimistic of achieving the targets before the due dates,” he said after the launch of the Atrium REIT prospectus yesterday.
The REIT is making an initial public offering (IPO) of 75.5 million units. The IPO closes at 5pm on March 9 and is expected to raise RM79.275mil.
Under the retail portion, 13.5 million units would be offered to the Malaysian public and two million to eligible directors, employees and business associates.
The balance 60 million units would be offered to institutional investors and select investors via a book-building exercise.
The final retail price would be set at the lower of the retail price of RM1.05 a unit or 97% of the institutional offer price, to be determined by way of book-building.
Zakaria said four properties worth a total RM158.3mil would be injected into Atrium REIT. The properties, sited in prime industrial areas in Kuala Lumpur and Selangor, are Atrium Shah Alam 1, Atrium Shah Alam 2, Atrium Puchong and Atrium Rawang.
“We are proud to be the first industrial asset-focused REIT in Malaysia,” Zakaria said, adding that 96% of the NLA under the REIT was taken up for logistics warehousing and leased to multinationals like DHL, Exel and Ceva (TNT) Logistics.
He said there was good demand for large logistics warehousing in Malaysia and the region.
Aseambankers Malaysia Bhd chief executive officer Surachet Chaipatamanont said that based on the initial retail offer price of RM1.05 a unit and distribution payout ratio of 95%, the forecast annualised distribution yield was 7.43% for the financial year ending Dec 31 (FY07) and 7.51% for FY08.
Aseambankers Malaysia is the adviser, managing underwriter and sole book-runner for the IPO.
Atrium REIT Managers chief executive officer Wong Sui Ee said the REIT's investment goal was to own and invest in custom-built and strategically located properties tenanted on secured long-term lease to reputable logistics companies.
“Most of our properties are leased for five years on average,” she said. “We are also looking to acquire quality properties abroad to inject into the REIT in time to enhance the fund size. We are talking to several parties in China and Vietnam.”
Atrium REIT is slated to list on the main board on March 26.
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