AmanahRaya REIT to buy properties

June 11 2007

AMANAHRAYA Real Estate Investment Trust (REIT), through its management company AmanahRaya-JMF Asset Management Sdn Bhd (ARJMF), has proposed to acquire several properties from Amanah Raya Bhd (ARB).

It will buy two parcels of leasehold industrial land in Klang for RM28.5 million; a parcel of freehold industrial land in Selangor for RM92 million; and two parcels of leasehold industrial land in Shah Alam for RM19.2 million.

The acquisitions will be satisfied by the issuance of new units in AmanahRaya REIT at an issue price of RM0.94 per unit.

The Klang land includes 12 units of single-storey warehouses and two units of guardhouses collectively known as the Tamadam 1 Bonded Warehouse Complex, with approximately 237,033 square feet total built-up area.

It is currently being occupied by Tamadam Bonded Warehouse Bhd through a lease agreement with ARB for 10 years, effective 1 January 2007.

The freehold Selangor land houses the Silver Bird Complex, used for bread and confectionery manufacturing by Silver Bird Group Bhd subsidiary Standard Confectionery Sdn Bhd. It has a 10- year lease agreement effective October 11 2006.

The land in Shah Alam, meanwhile, includes a factory complex occupied by AIC Corp Bhd for use in the manufacturing of motor vehicles spare parts, flat screen television and computer monitors.

AIC has a 10-year lease agreement with ARB from September 13 2006.

All these lease agreements will be novated to AmanahRaya REIT upon completion of the proposals.

ARJMF also plans to buy a parcel of leasehold commercial land in Sugai Buloh from SEG International Bhd for RM145 million, and a leasehold industrial land in Kedah from Teras Globalmas Sdn Bhd for RM23.97 million.

Both these acquisitions will be satisfied by cash, AmanahRaya REIT told Bursa Malaysia.

"The vendors of the aforesaid properties have agreed in principle to sell the properties to AmanahRaya REIT subject to the signing of the sale and purchase agreements at a later date," the company said.

In addition, the company also proposed a private placement of up to 100 million new units in Amanah Raya REIT at an issue price to be determined at a later date.