REIT expected to buy 2 Cyberjaya buildings

AmFIRST Real Estate Investment Trust (AmFIRST) is expected to sign a deal to buy two commercial buildings in Cyberjaya with a combined estimated value of over RM130 million.

Sources said an agreement between AmFIRST and the Prima Group of companies could be entered into as early as tomorrow.

The properties, which are a couple of years old, were identified as Prima 9 and Prima 10. They are both located within the Prima Avenue II development in Cyberjaya.

The purchase will effectively increase the total assets under AmFIRST's management by 12 per cent. It currently has six assets worth RM1.02 billion.

AmFIRST's last major acquisition was in 2008 when it bought The Summit Subang in USJ Subang Jaya, Selangor.

A source told Business Times that one of the buildings is fully occupied, while the other is currently 80 per cent occupied.

The major tenant of Prima 9, a seven-storey office building with two basement car parks, is EDS MSC Sdn Bhd. It has a total net lettable area of 110,000 sq ft is. The major tenant at Prima 10, with 100,000 sq ft of space, is RBC Dexia.

However, it is understood that upon completion of the purchase, expectedly in September 2011, both buildings will enjoy full occupancy.

According to Prima Avenue's website, the Prima Avenue I and II are integrated office developments, owned and managed by Prima Properties.

Prima Properties has to date designed and built over 3.8 million sq ft of commercial space in Cyberjaya.

An official from AmFIRST, contacted by Business Times declined to comment when asked about the acquisitions.

Its assets now include Menara AmBank, Bangunan AmBank Group and the AmBank Leadership Centre in Kuala Lumpur.

Apart from The Summit, its properties in Petaling Jaya include Menara Merais and Kelana Brem Towers.

In the financial year ended March 31 2011, AmFIRST revenue slipped 9.8 per cent to RM88.54 million from RM98.19 million.

Net profit declined by 12.35 per cent to RM10.57 million from RM12.60 million in the year ended March 31 2010.

The decrease was attributed to the reduction in occupancy rates in Kelana Brem Towers and cessation of an guaranteed minimum income for Summit Subang.

Nevertheless, AmFIRST declared a dividend of 9.75 sen, which is the same as in the previous year.

By Business Times