KUALA LUMPUR (June 24): Sunway Real Estate Investment Trust (Sunway REIT) has acquired a 3.63-acre freehold industrial land in Sungei Way, Petaling Jaya for RM60.05 million.
The asset includes a double-storey building and a five-storey building with a total gross floor area of 497,487 sq ft, said a statement issued by Sunway REIT’s manager, Sunway REIT Management Sdn Bhd.
It said the acquisition is expected to be completed in the second half of 2022, after which Sunway REIT’s property value will increase to RM8.80 billion from RM8.74 billion as at Dec 31, 2021.
The acquisition will be fully funded by Sunway REIT’s existing debt programme, with its gearing ratio expected to increase from 37.2% as at Dec 31, 2021 to 37.6% upon completion of the exercise, the statement said.
“Our strong balance sheet places Sunway REIT in a position of strength to continue our active pursuit of yield-accretive acquisition opportunities that are present in the market,” said Sunway REIT Management CEO Datuk Jeffrey Ng.
Ng said the acquisition is in line with Sunway REIT’s direction to expand its asset portfolio in the industrial segment.
“The property is strategically located in an established industrial zone in Petaling Jaya, easily accessible via major roads and expressways such as the Federal Highway and Lebuhraya Damansara-Puchong. The manager is actively looking for quality anchor lessees, given the size and strategic location of the property,” he said.
Sunway REIT’s share price settled three sen or 1.97% lower at RM1.49 on Thursday (June 23), bringing a market capitalisation of RM5.1 billion.
Edited by S Kanagaraju