PETALING JAYA: Al-Aqar Healthcare Real Estate Investment Trust (Al-Aqar REIT) is disposing of the building being operated by KPJ Healthcare
College in Bandar Bukit Mertajam, Penang, to Icon Square Sdn Bhd for RM12mil.
In a filing with Bursa Malaysia, Al-Aqar REIT said the building is presently under lease in favour of KPJ Healthcare University Sdn Bhd.
Al-Aqar REIT said the proposed disposal is a part of its capital recycling efforts by divesting its non-core or underperforming assets for capital re-allocation toward higher-yielding investments.
“Since the property contributes only RM0.97mil net property income in the financial year ended Dec 31, 2024, the proposed disposal will have minimal impact to Al-Aqar REIT’s financial performance and income distribution.
“The proposed disposal will provide Al-Aqar REIT with gross cash proceeds of RM12mil and is intended to be redeployed for yield accretive investment(s) and/or asset enhancement initiatives that are strategically aligned with Al-Aqar REIT’s five-year plan (2024-2028).”
In the event no new investment is secured within the next 12 months, Al-Aqar REIT said its manager will utilise the proceeds to repay bank borrowings and reduce the gearing of Al-Aqar REIT.
