AME REIT to sell three industrial properties for RM14.5 mil

• "This divestment forms part of our active portfolio management and capital discipline, where mature, smaller-format properties are monetised at attractive valuations and capital is redeployed into larger, scalable properties with stronger long-term growth.”

KUALA LUMPUR (Jan 6): AME Real Estate Investment Trust said it is selling three industrial assets for RM14.5 million in total to an existing tenant at its i-Park @ SILC in Johor.

The transaction is expected to generate a gain on disposal of RM4.5 million excluding estimated incidental costs, which represents a 44.7% gain over the original cost of investment, the trust said in a statement. The deal is expected to be completed in phases by June, AME REIT said.

“This divestment forms part of our active portfolio management and capital discipline, where mature, smaller-format properties are monetised at attractive valuations and capital is redeployed into larger, scalable properties with stronger long-term growth,” said chief executive officer Chan Wai Leo.

The properties at i-Park SILC 3, i-Park SILC 4, and i-Park SILC 6 comprise 1.5-storey semi-detached factories with ongoing leases with a combined agreed lettable area of 37,104 square feet. The price tag is a premium of 18.5%-24.8% over their market values as appraised by the independent valuer.

The buyer was not identified. i-Park @ SILC is an industrial estate spanning nearly five hectares in Iskandar Puteri, catering mostly to small and medium enterprises.

“The premiums achieved underscore the continued strength of industrial demand and rising capital values within the Johor–Singapore Special Economic Zone. Importantly, the transaction allows us to unlock value while maintaining income stability, portfolio efficiency and balance sheet flexibility,” Chan added.

The trust is also in the midst of acquiring i-Park SAC 34, which would be completed in the first quarter.

Once the deals are completed, AME REIT will have 38 industrial properties and three industrial-related workers’ dormitories with a combined agreed lettable area of 2.5 million square feet and valued at RM913.2 million.

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