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KUALA LUMPUR: FBSM Holdings Bhd has accepted an offer from Mayban Trustees Bhd (MTB), the trustees of AmFirst Real Estate Investment Trust (AmFIRST REIT), to sell FBSM Plaza to Mayban for RM51.5 million cash.
A letter of offer, which was issued to FBSM by AmFIRST REIT management company Am ARA REIT Managers Sdn Bhd (AARMSB), has been accepted, it announced on Bursa Malaysia on Thursday, Sept 2.
The group said the disposal of the property would allow it to unlock the value of the building and realise its investment, besides resulting in a cash flow of RM51.5 million to the group, which it has proposed to use in the repayment of bank borrowings and as working capital.
In a separate announcement, AmFIRST REIT said it was actively looking for “yield accretive assets or good quality properties with strong recurring rental income and potential for revenue and capital growth”, and the acquisition was in line with the fund’s investment objective and strategy.
The building is also expected to be accretive to the fund’s distributable income, with potential to achieve a long term growth in AmFIRST REIT’s net asset value.
FBSM Plaza is a five-storey “intelligent” building that rests on a parcel of freehold land in Dengkil, Selangor. It has a building automation system, auditorium, function area, badminton courts, nursery and daycare centre as well as surau facilities.
It has a land area of about 89,760 sq ft and a total net lettable area (NLA) of about 112,151 sq ft. About 29,008 sq ft of the building representing the untenanted area is either partially occupied by FBSM or vacant.
The price of the building was arrived at on a willing buyer-willing seller basis after considering FBSM Plaza’s market value of RM54 million according to a valuation performed by Messrs Rahim & Co (Sel) Sdn Bhd, said FBSM.
Meanwhile, according to AmFIRST REIT, CH William Talhar & Wong had valued the property at RM53 million in its valuation certificate dated Aug 26.
AmFIRST REIT said FBSM will provide an assurance and guarantee that rental income from the untenanted area will be at least RM8.14 million for six years, from the date the acquisition is completed.
“The guaranteed minimum rental income shall comprise the agreed rates of annual rent of RM1.3 million for the first three years and RM1.4 million for the remaining three years,” the fund said.
