AmanahRaya REIT to buy industrial asset in Selangor for RM39m

• Upon completion, the property will be leased back to the seller, Alpha Express, under a 10-year triple net lease at RM195,000 per month, subject to rent reversion for each renewal term.

KUALA LUMPUR (May 29): Amanahraya Real Estate Investment Trust (AmanahRaya REIT) (KL:ARREIT) is acquiring an industrial building, measuring 132,700 sq ft, in Telok Panglima Garang, Selangor for RM39 million.

Pacific Trustees Bhd, acting on behalf AmanahRaya REIT, entered into an agreement on Thursday to buy the property from Alpha Express Sdn Bhd, said AmanahRaya REIT in an exchange filing.

It noted that the RM39 million price tag reflects a slight discount from the property’s RM40 million market valuation as of May 2.

Upon completion, the property will be leased back to the seller, Alpha Express, under a 10-year triple net lease at RM195,000 per month, subject to rent reversion for each renewal term.

“The proposed acquisition of the property will be accretive to AmanahRaya REIT’s distributable income and adds to the portfolio of properties that will benefit the fund in the long term,” said the REIT, which is 45.6%-owned by Minister of Finance Inc trustee company Amanah Raya Bhd.

AmanahRaya REIT noted that the property is located near the South Klang Valley Expressway and the West Coast Expressway.

The REIT said it will fund the purchase via bank borrowings. As at end-March 2025, its cash stood at RM24.63 million, while borrowings totalled RM571.88 million.

The transaction is expected to close by the fourth quarter of 2025, it added.

Shares in AmanahRaya REIT closed up one sen or 2.67% to 38.5 sen on Thursday, valuing the trust at RM220.70 million.

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