AmanahRaya REIT to sell Contraves building in Cyberjaya for RM42.5 mil cash

• The building, which AmanahRaya REIT has owned for almost eight years, is a four-storey purpose-built office building with one basement level.

KUALA LUMPUR (June 26): AmanahRaya Real Estate Investment Trust (REIT) (KL:ARREIT) is selling its office building, Contraves building in Cyberjaya, for RM42.5 million cash.

The REIT's trustee-manager Pacific Trustees Bhd has inked a conditional sale and purchase agreement with software provider 4X Software Sdn Bhd, who is buying the building for business expansion, the REIT said in a bourse filing on Wednesday. The sale has to obtain the approval of the Economic Planning Unit.

The building, which AmanahRaya REIT has owned for almost eight years, is a four-storey purpose-built office building with one basement level. Sitting on a freehold land area of about 89,470 sq ft, the building is fully occupied as of May 31, according to the REIT's filing on Wednesday.

The REIT said it has maximised the building’s income-generating potential and sees limited upside for future rental growth for the asset, with the office market being in over supply.

It is expecting to gain RM1.2 million from the proposed disposal, which should be completed by the first half of 2025.

“The decision to divest is aligned with AmanahRaya REIT’s strategic vision and ongoing efforts to streamline its asset base. Considering the favourable pricing of this asset sale, we view this as an opportune moment to divest and reallocate capital into properties that will enhance yields," said Amanahraya REIT managing director Tunku Rozita Tunku Abdul Malek in a separate statement.

Proceeds from the sale will bolster the REIT's financial position, enhancing its ability to pursue strategic growth opportunities and deliver value to its unitholders, the REIT added.

It had just completed the sale of its four-star Holiday Villa Beach Resort and Spa Langkawi in Kedah in January this year for RM145 million cash.

The REIT's units slipped one sen or 2.86% to close at 34 sen apiece on Wednesday, giving the group a market capitalisation of RM192.11 million. Its unit price has dropped 12.82% year to date.

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