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Thursday, April 22, 2010

ARREIT aims to grow assets to RM1.5bil

AmanahRaya building in Kuala Lumpur. ARREIT plans to better manage its existing assets.

SUBANG JAYA: AmanahRaya Real Estate Investment Trust (ARREIT) is targeting to grow its total assets to RM1.5bil in the next two years from RM748mil currently by injecting new properties into its portfolio and improving the value of its existing assets.

ARREIT manager AmanahRaya-REIT Managers Sdn Bhd chief operating officer Abas A. Jalil said ARRM was now evaluating the possibility of injecting more properties into its REIT.

“We are looking at acquiring office buildings, warehouses and hotels in the Klang Valley, Penang, Johor Baru and Kota Kinabalu.

“These buildings have a similar asset class. They have reputable tenants, a long-term lease and generate a stable income stream,” he told StarBiz after ARREIT unitholders’ meeting yesterday.

Abas said ARREIT unitholders had passed the resolution for the acquisition of Selayang Mall (in Selayang) and Dana 13 in Ara Damansara for RM227mil. The acquisition, to be completed by early next month, would boost its total asset value to RM1.002bil.

He said ARREIT was buying the properties at a good value.

“The Selayang Mall’s value is RM132mil but we are purchasing it at RM128mil while Dana 13, which is valued at RM107.8mil, is being bought at RM99mil.”

“We have carefully evaluated the assets. For Selayang Mall, the tenancy mix comprises good brands while Dana 13 is the corporate headquarters for Symphony House Bhd. They moved into the premises in late 2009 and they are under a guaranteed lease for 10 years,” he said.

Abas said plans were in place to better manage its existing assets. “We are talking to all our lessees for the future enhancement of their asset values,” he said.

He added that the acquisition of the two properties would allow ARREIT to provide better returns to unitholders.

“We are looking at 7.29 sen for this year after the acquisition of the two properties,” he said. ARREIT returned 7.15 sen to each unitholder in 2009.

By The Star (by Eugene Mahalingam)

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