Sunway REIT buys first industrial real estate for RM91.5mil


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.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

Next In Business News

Malaysia's PPI eases slightly to 4% in October 2022
FGV on course to a strong close in 2022
Asia stocks rebound despite disappointing China data
Mah Sing posts 32% jump in property sales to RM1.69bil
Malaysia's official reserve assets at US$105.23bil as at end-October
AmBank stays positive on FY23 performance
Public Bank records 3Q net profit of RM1.59bil, declares 4c/share dividend
FBM KLCI bounces higher at midday
Disney buys MLB's stake in streaming firm BAMTech for US$900mil
Australia monthly inflation slows in October, hints at possible peak

Others Also Read