Local support pushes retail oversubscription rate of AmanahRaya REIT to more than 12 times
Kuala Lumpur, 13 February, 2007:- Retail investors have come out in force to support the AmanahRaya Real Estate Investment Trust (REIT); the first government owned company sponsored REIT to seek a listing on Bursa Malaysia’s Main Board.
In a statement issued in Kuala Lumpur today, Datuk Mohamed Azahari Mohamed Kamil, Managing Director of AmanahRaya-JMF Asset Management Sdn Bhd, said that it had received a total of 16,511 applications amounting to 123 million units from the 9.2 million units offered to retail investors when the offer closed last Friday (February 9, 2007), representing an oversubscription of more than 12 times.
“In addition, the offer of 119.6 million units offered to institutions was fully taken up through private placements in Singapore, Hong Kong and Europe which constitutes 63% of the total units offered under private placements,” said Datuk Mohamed Azahari Mohamed Kamil.
“The overall result of the IPO translates into a huge vote of confidence for the AmanahRaya REIT and our strategy to grow the value of our portfolio over the long term via acquisition of properties with high growth potential and long term income visibility,” he added.
“Our strategy to develop a highly diversified portfolio to cushion the impact of a market cycle in any one sector or locality as well as focus on organic growth of each existing property under the portfolio should help us to sustain or even outperform projected yields,” he said.
AmanahRaya REIT is raising RM336 million from the IPO exercise and borrowing, proceeds from which, will be utilised to finance the acquisition of eight initial properties to be injected into the REIT.
The eight anchor properties comprise commercial complexes, hotels and an educational institute. They are all located in developed areas with good long-term growth potential.
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