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Al-Hadharah Boustead REIT to boost asset value to over RM1b with new asset injections

KUALA LUMPUR: Al-Hadharah Boustead REIT will be injecting new assets into its portfolio, namely the Sutera Estate and Taiping Rubber Plantation, including the Trong Oil Mill, into its portfolio.

The fund's unitholders had approved of the acquisition of the properties from Boustead Holdings Bhd at a unitholder's meeting on Tuesday, Mar 15, it said in a statement.

"This acquisition is a reflection of our commitment in enhancing the attractiveness of the Fund for potential unitholders and discerning investors. Being Malaysia’s only Islamic plantation real estate investment trust (REIT) in the country, we are confident that we are able to maintain our momentum and growth," said Boustead REIT Managers Sdn Bhd chairman Tan Sri Lodin Wok Kamaruddin.

"With the acquisition, our total asset value is set to surpass RM1 billion. Additionally, our combined asset size will grow from the current 16,000 hectares to 20,000 hectares which should place us as one of the most attractive REITs on the market," he added.

The REIT will fund the purchase consideration of RM189.23 million in cash through a proposed placement of 75 million new units as well as Syariah-compliant financing.

The proposed placement will enlarge the fund size to 632 million units from the current 557 units.

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