AME Elite and AME REIT announce RM119.5mil industrial properties transaction in Iskandar Malaysia

KUALA LUMPUR: AME Real Estate Investment Trust's (AME REIT) manager I REIT Managers Sdn Bhd has proposed to acquire four industrial properties in Iskandar Malaysia, Johor, from the subsidiaries of AME Elite for a total cash consideration of approximately RM119.5mil.

The related party acquisition will see the REIT acquiring industrial lots at i-TechValley and i-Park with factories, mezzanine offices and other ancillary buildings.

"The purchase consideration represents a discount of approximately 2.1% from the aggregate market value ascribed by CBRE WTW Valuation & Advisory Sdn Bhd, which is the independent property valuer that had been arrived at on a willing buyer-willing seller basis," it said.

The amount will be satisfied entirely in cash through its Islamic financing facilities, and the estimated expenses arising from the proposed acquisitions of RM2.4mil will be satisfied entirely in cash with internally generated funds of AME REIT, it said.