Amanahraya Reit Injects Five New Properties Valued At Rm308.67 Million
Unitholders Vote On Approval At Unitholders Meeting
KUALA LUMPUR, 26 October 2007 - Unitholders of AmanahRaya Real Estate Invertment Trust (AR-REIT) today voted in the proposed private placement of up to 100 million new units in AR-REIT and the proposed acquisitions of the entire interest in three properties from Amanah Raya Berhad (as trustees for Kumpulan Wang Bersama) to be satisfied through the issuance of new consideration units and two other properties purchased directly from the vendors to be satisfied wholly by cash.
The five new properties valued at RM308.67 million are two parcels of leasehold land housing the Tamadam bonded warehouse in Port Klang; a parcel of freehold land housing the Silverbird factory in Shah Alam; two parcels of leasehold industrial land housing the AIC factory in Shah Alam; a parcel of leasehold commercial land housing the Segi College in Kota Damansara; and a parcel of leasehold industrial land housing an automotive parts warehouse in Gurun, Kedah.
In a statement issued today, AR-REIT deputy chairman Encik Ahmad Kamal Abdullah Al-Yafii said, The proposed placement is to enable AR-REIT to part finance the proposed acquisitions with the view to increase the fund size and improve the trading liquidity of AR-REIT units.
The proposed acquisitions are also in line with the objectives of our growth strategy to provide unit holders with stable distribution and to achieve growth in NAV per unit of the AR-REIT by acquiring yield accretive assets and good quality properties with strong recurring rental income.
All the master tenants of the five new properties are publicly listed companies in Malaysia, he added.
Although the five new properties are largely single master tenant and single purpose industrial properties, they provide vertical diversity to AR-REIT's property portfolio.
The proposed acquisitions will be funded by a combination of bank borrowings, proceeds from the proposed placement and the issuance of the consideration units with no liabilities including contingent liabilities and guarantees, to be assumed by AR-REIT arising from the proposed acquisitions.
The proposed placement and proposed acquisitions will be 73.6 per cent funded by equity and the remainder by debt, will be completed in the fourth quarter of 2007 with the Segi and Gurun acquisitions satisfied by cash, added Encik Ahmad Kamal.
AmanahRaya REIT is a Malaysian-based real estate investment trust (REIT) established with the objective of investing in income-producing real estate and real estate-related assets.
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