Atrium REIT expects listing by Jan 2007

from Biz Time

ATRIUM Real Estate Investment Trust (Atrium REIT), which is the country's first industrial asset REIT, is targeting a listing on the main board of Bursa Malaysia by January 2007.

Atrium REIT Managers Sdn Bhd director John K. H. Lim said it will issue 121.801 million units. It obtained approval from the Security Commission recently.

Lim said four properties valued at RM158.3 million will be injected into the Atrium REIT, with the potential gross revenue to be RM14 million per year.

"The net distributable yield of the properties - Exel Logistics and TNT Logistics in Shah Alam, DHL Logistics in Puchong and Unilever in Rawang - are projected to be above 7 per cent per year," he told Business Times.

Atrium REIT Managers is 60 per cent owned by property developer Glory Blitz Industries Sdn Bhd, with the rest held by Atrium REIT Managers chairman Zakaria Meranun via Orion Asia Sdn Bhd (30 per cent) and Lim, via Jelatik Tegas Sdn Bhd (10 per cent).

On the issuance of the units, Lim said 60 million units will be issued to institution investors, 13.5 million units to the public, two million units for eligible directors, employees and business associates, while the remaining 46.3 million units will be retained by vendors Glory Blitz Industries and Sparkle Skyline Sdn Bhd.

Glory Blitz Industries, which is the flagship company, spearheads the group's construction and real estate activities - having evolved from general contracting to residential property developments and provider of high quality warehousing and industrial space solutions.

Its spectrum of civil engineering and general contracting services covers warehouses and distribution facilities, commercial and shopping complexes, government buildings, sport complexes, universities, factories, hotels and motorways.

It is currently bidding for five new properties worth a total of RM250 million in the Klang Valley, said Lim.

The leases for these properties are between five years and 10 years, with an extended option of another five years.