AME REIT plans to acquire industrial properties in Johor for RM69.3mil

KUALA LUMPUR: I REIT Managers Sdn Bhd, the management company of Islamic REIT AME Real Estate Investment Trust (AME REIT), has proposed maiden post-listing acquisitions of three industrial properties in Iskandar Malaysia, Johor for RM69.3 million.

The move would boost AME REIT’s proforma total asset value by 12.8 per cent to about RM644.1 million, the management company said in a statement today.

AME REIT was listed on the Main Market of Bursa Malaysia Securities Bhd in September 2022.

I REIT Managers chief executive officer and executive director Chan Wai Leo said the acquisitions would mark a commendable start for AME REIT’s growth journey.

"These newly minted industrial properties are located in prime locations with excellent build quality.

"In addition, upon acquisition completion, the properties will be fully occupied by quality customers with long leases,” he said.

RHB Trustees Bhd (in its capacity as the trustee of AME REIT) has entered into three conditional sale and purchase agreements with subsidiaries of AME REIT’s sponsor, AME Elite Consortium Bhd.

The properties consist of two industrial properties in i-Park @ Indahpura in Kulai and an industrial property in i-Park @ Senai Airport City (SAC) in Senai, with a combined agreed lettable area (ALA) of more than 256,000 square feet (sq ft).

The proposed acquisitions would increase AME REIT’s ALA by 15.9 per cent to approximately 1.9 million sq ft from 1.6 million sq ft at present.

All three industrial properties have existing lease arrangements for a tenure of 10 years with an option to renew for a further three to five years.

The acquisitions are expected to provide AME REIT with stable and sustainable income over the tenure of the leases. - Bernama