KUALA LUMPUR (June 16): AmanahRaya Real Estate Investment Trust (REIT) is acquiring a land together with a four-storey office building in Cyberjaya for RM40 million.
In a filing to Bursa Malaysia today, AmanahRaya REIT said it is buying the property from Cyberview Sdn Bhd and Setia Haruman Sdn Bhd.
The trust manager said the freehold land measures 8,312 square metres (89,470 sq ft) while the building has a gross floor area of approximately 93,804 sq ft.
AmanahRaya REIT intends to pay 20% of the purchase price in cash and the remainder through a term loan, noting that this will its raise its gearing to 29.5% from 26% now.
"The proposed acquisition is in line with the key investment objective of the manager, which is to provide sustainable returns to the unit holders," it said, adding its main focus is to ensure that all investments made are yield and value accretive.
According to the trust manager, the property has a tenancy arrangement for a tenure of five years with a potential for extension for another three years.
"It also provides an initial net yield of 7.19% per annum," it added.
The proposed acquisition is expected to have positive effect on the earnings of AmanahRaya REIT for the financial year ending Dec 31, 2016.
AmanahRaya REIT's share price closed unchanged at 90 sen today, for a market value of RM515.89 million. — theedgemarkets.com
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