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KUALA LUMPUR (July 23): AME Real Estate Investment Trust (KL:AMEREIT) is purchasing three pieces of vacant freehold industrial land in i-Park @ Senai Airport City, Johor for RM50.2 million.
The acquisition, executed by RHB Trustees Bhd on behalf of AME REIT, spans 8.87 acres and is the REIT's first purchase from a third party rather than its sponsor, AME Elite Consortium Bhd (KL:AME).
Since listing on Sept 20, 2022, the REIT has completed RM289.5 million in sponsor-linked asset purchases.
The freehold location positions the REIT to capitalise on rising demand for premier industrial space driven by investments in the Johor-Singapore Special Economic Zone (JS-SEZ).
Moreover, the transaction expands the REIT’s presence in i-Park @ Senai Airport City, where properties already account for 48.6% of its portfolio by value following the trust crossing the RM1 billion asset mark.
Under a new build-to-lease initiative, the REIT plans to develop three detached industrial facilities on the newly acquired land into flexible spaces that can be customised to tenant requirements, while existing on-site infrastructure will allow for reduced time for incoming companies to develop its operation sites.
"This strategy enables us to proactively create the type of industrial assets increasingly sought by the market, rather than competing for completed assets in an environment where acquisition yields remain compressed," said chief executive officer and executive director of I REIT Managers Sdn Bhd Chan Wai Leo in a statement on Thursday. I REIT is the manager of AME REIT.
Upon fulfilling agreed conditions subject to administrative paperwork and regulatory approvals, the manager will be entitled to a vendor rebate that will further reduce its effective acquisition cost.
“The purchase represents a 5.2% discount on the market value appraised by an independent valuer,” Chan noted.
The acquisition and subsequent facility build-out will be funded through a mix of Islamic financing facilities and internally generated funds.
The transaction is expected to be completed by the fourth quarter of 2026.
AME REIT’s current portfolio comprises 41 industrial and industrial-related assets across Iskandar Malaysia.
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