Malaysia Property News is a free resource website sharing Daily Property News & information about Property in Malaysia, which related to, Property Market, Property Investment, Commercial Property , Hot Properties Malaysia, Real Estate, Retail Shop, Business Park, Condominium Malaysia, Terraces & Apartment Malaysia, Houses, Residence, Resort and many more.

Saturday, May 22, 2010

AR-REIT in early talks to buy 3 or 4 properties

The manager of AmanahRaya Real Estate Investment Trust (AR-REIT), which plans to increase its asset size to RM1.5 billion within the next two years, is in early talks to buy three to four commercial properties.

The properties, which comprise office buildings and shopping centres, are mainly in the Klang Valley.

"Talks (with the vendor) are at a very preliminary stage. We're hoping to complete the purchase by the middle of next year," said Adenan Md Yusof, chief operating officer of AmanahRaya-Reit Managers Sdn Bhd (ARRM).

AR-REIT has an asset size of about RM1 billion, making it the country's second largest property trust after Starhill REIT.
The property trust yesterday agreed to lease a warehouse complex in Port Klang to Kontena Nasional Bhd, the national container haulier and logistics services provider, for nine years.

The lease will contribute an annual rental of RM2.15 million for the first three years, which is about 3.5 per cent of the total income received by AR-REIT.

"There will be a five per cent step-up rental (after the first three years)," Adenan told reporters after the signing ceremony.

The warehouse is one of the 15 properties managed by ARRM and one of the five industrial properties in the AR-REIT portfolio.

"Kontena has now increased its storage capacity and expanded its services without having to raise funds for construction of new facilities," Kontena's chief executive officer Hood Osman said.

It plans to designate the complex as Kontena Nasional Distribution Centre 11, housing 12 units of single-storey warehouses, offices, cold room and open yard facilities.

Kontena will continue to offer tenancy to the existing tenants at the warehouse complex in the hope that it will also be able to provide to them its logistics services.

The tenants there now include Gudang Damansara, Ikano, Rafsanjan Pistachio Producers, Milawa and Taskar Shipping & Forwarding.

By Business Times

No comments: