AmanahRaya REIT pursues new asset buy as its RM42.5 mil Cyberjaya property sale falls through

• The purchaser, 4X Software Sdn Bhd, was unable to fulfill the stipulated condition precedent within the agreed timeline, which ended on Dec 26, 2024, according to AmanahRaya Kenedix REIT Manager Sdn Bhd, the REIT’s manager.

KUALA LUMPUR (Jan 24): AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) has terminated its plan to sell the Contraves building in Cyberjaya due to a failed condition precedent, but is simultaneously pursuing the acquisition of a sustainable asset to boost its distribution per unit (DPU).

The purchaser, 4X Software Sdn Bhd, was unable to fulfill the stipulated condition precedent within the agreed timeline, which ended on Dec 26, 2024, according to AmanahRaya Kenedix REIT Manager Sdn Bhd, the REIT’s manager.

While it did not stipulate what the condition was, the REIT had previously said the sale of the property, for RM42.5 million cash, had to obtain the approval of the Economic Planning Unit.

The proposed disposal, initially agreed upon in June last year, was part of AmanahRaya REIT’s strategic portfolio realignment. It had expected a gain of RM1.2 million from sale of the property, which has a gross built-up area of 93,804 sq ft, with a carrying amount of RM42.5 million as of Dec 31, 2023.

“The termination of the deal for Contraves building was not taken lightly as it reflects AmanahRaya REIT’s responsibility to act in the best interest of its unitholders and to prioritise strategic growth in alignment with market dynamics. 

“We remain committed to pursuing opportunities that enhance portfolio value and support sustainable growth,” the manager said in a statement. 

In tandem with the announcement, the manager announced that AmanahRaya REIT is in the midst of acquiring a sustainable asset to improve the distribution per unit (DPU), but did not elaborate.

“This proactive approach, underscores the REIT’s dedication to optimising its portfolio and delivering superior value to its unitholders,” it added. 

AmanahRaya REIT’s DPU has been on a declining trend over the past few years, falling from a high of 6.200 sen in 2019 to 1.198 sen in 2023.

As of end December 2024, AmanahRaya REIT holds 11 properties with a total fair value of RM1.3 billion. The portfolio is diversified across various property types, including office complexes, educational institutions, industrial buildings, retail complexes and hotels. 

These properties are located in Johor, Kedah and the Klang Valley, which encompasses Kuala Lumpur, Petaling Jaya, Shah Alam, Damansara Heights, and Subang Jaya.

Shares of AmanahRaya REIT closed up half a sen or 1.33% at 38 sen on Friday, giving it a market capitalisation of RM215 million.

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