AmFIRST REIT to acquire retail unit in The Summit Subang USJ for RM6.8m

KUALA LUMPUR: AmFIRST Real Estate Investment Trust (AmFIRST REIT) has proposed to acquire a retail unit measuring about 37,372 sq ft in The Summit Subang USJ Retail Podium for RM6.8 million cash, the fund announced on Bursa Malaysia on Thursday, Sept 2.

The fund had entered into a sale and purchase agreement (SPA) with SYF Trading Sdn Bhd to acquire the unit, on the second floor of the shopping centre, free from encumberances and subjected to existing tenancies.

AmREIT said the acquisition was based on several reasons, among them the following: a guarantee from SYF that the guaranteed minimum monthly rental income from the property will be RM68,929.73 aggregating to RM827,156.80 over the guarantee period of a year, two existing tenants, and the right for the fund to retain from the purchase price RM827,156.80 to be set off against either any monthly shortfall from the minimum monthly income, failure or nonpayment of rent by existing tenants or the vacancy of the property or part of it arising from a termination of existing tenancies on or before the expiry of the guaranteed period.

The Summit Subang USJ Retail Podium, where the property is located, is inside an integrated commercial complex known as The Summit Subang USJ.

The complex is situated about 35 kilometres south west of Kuala Lumpur city centre and is accessible either via Jalan Syed Putra and continues onto the Federal Highway or onto the New Pantai Expressway (NPE) which eventually intersect with Persiaran Kewajipan. Alternatively, it is also accessible from the Lebuhraya Shah Alam via the Kewajipan Interchange.

The purchase consideration was arrived at on a willing buyer-willing seller basis after considering the market value of the property of RM6.8 million as appraised by Rahim & Co in a report dated April 19.

The property was valued through a combination of a comparison method, or cost approach, and investment methods.

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