First logistic-focused industrial REIT

By Joyce Goh


Atrium Real Estate Investment Trust (Atrium REIT), the first logistic-focused industrial REIT, will have an initial portfolio of properties with about 809,668 square feet.
“The initial approved portfolio of investment properties comprises four freehold industrial properties with a combined net lettable area of approximately 809,668 sq feet leased to reputable and financially strong multi-national tenants,” said chairman of Atrium REIT Managers Sdn Bhd, Zakaria Meranun.

The four prime properties consists of three warehouses, namely the Exel and TNT logistics warehouses in Shah Alam, the DHL logistics warehouse in Puchong and a manufacturing plant leased to Unileaver in Rawang.

“The management has plan to double up the size within five years period. In the short term, we will try to exceed the one million sq feet target. Within five years, we will double up to 1.6 million sq feet,” said executive director of Atrium REIT, John Lim.

Future possibilities consist of warehouses in China, Vietnam as well as warehouses in Bukit Jelutong for a Swiss logistics company and a Japanese company.
“Atrium REIT’s principal objective is to invest, directly or indirectly, in a portfolio of income producing industrial and logistic real estate assets,” said Zakaria.
Chief executive officer of Atrium REIT, Wong Sui Ee said: “Trade is picking up in Southeast Asia because of China and India.
"Malaysia is a very strategic place for the goods to flow through China / India to the rest of the world,” she said.

“Logistics is definitely a growing industry. Malaysian total trade has exceeded RM1 trillion. More and more goods need to be distributed,” Lim added.
They were speaking to reporters after the signing of the underwriting agreement ceremony between Atrium REIT and Aseambankers Malaysia Bhd.

Atrium REIT will be making a public offering of 75.5 million units.
“The total issues is under RM150 million with offering around RM80 million,” said head of equity markets of Aseambankers, Francis Goh

The REIT has an approved initial fund size of 121.8 million units, whcih consist of 1,000 promoters' units, 46.3 million units for vendors Glory Blitz Industries Sdn Bhd and Sparkle Skyline Sdn Bhd and 75.5 million units for public.
Out of the 75.5 million units, 13.5 new units will be opened for public application, two million new units via pink form allocation and 60 million units will be for institutional investors via bookbuilding process.

Atrium REIT targets to be listed by the first quarter of 2007.