AmanahRaya REIT aims to buy 'trophy assets', eyes KL office tower

KUALA LUMPUR (April 18): AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) aims to acquire “trophy assets” in the immediate term, despite the softening property market, said Amanah Raya Bhd’s (ARB) group managing director Adenan Md Yusof.

In saying so, AmanahRaya REIT is looking to acquire a commercial property (office tower) in Kuala Lumpur, valued between RM350 million and RM370 million. 

“We are looking at one commercial property (an office tower) in Kuala Lumpur which is valued at about RM350 million to RM370 million, and are in negotiating terms with the party. We hope to close the deal by the second quarter of 2017 and complete the acquisition by year-end,” Adenan told reporters after the REIT’s fifth annual general meeting (AGM) today.

In 2016, the REIT acquired three properties, namely the Deluge Factory in Nusajaya, Toshiba TEC Malaysia in Shah Alam and Contraves in Cyberjaya, with a combined value of RM96 million.

The REIT’s portfolio currently includes 15 properties scattered across Malaysia, collectively valued at RM1 billion.

In December 2016, ARB said the group aims to double the properties value of its REIT to RM2 billion within the next three to five years. Adenan reiterated that the plan remains among the group’s top priorities.

“We are seriously hoping to seal the deal (for the acquisition of the office tower). We are always on the lookout for new buildings to acquire, but the returns will have to be lucrative for the REIT,” he said, adding that the average property yield in 2016 was 6%.

At 2.40pm, AmanahRaya REIT’s share price stood at 94 sen, valuing it at RM538.83 million. — theedgemarkets.com

For more stories, download TheEdgeproperty.com pullout here for free.