KUALA LUMPUR (Sep 7): Amanahraya Real Estate Investment Trust (ARREIT) is acquiring Vista Tower, a 63-storey office building, from The Intermark Sdn Bhd for RM455 million in cash.

The office tower with two concourse levels and three basement levels has a land area of  228,948 square feet, according to a filing with Bursa Malaysia by the REIT’s management company, AmanahRaya-Kenedix REIT Manager Sdn Bhd.

The building’s net lettable area is 551,875 square feet, and the occupancy rate was 74.4% as of July 31 and could fall to 66.3% due to the non-renewal of one of the tenancy agreements upon expiry on Nov 30, said AmanahRaya-Kenedix.

It added that the purchase consideration was below the market value, estimated at about RM523 million, based on the investment method.

According to the filing, the proposed acquisition will elevate the ranking of Amanahraya REIT to among the top 10 REITs in Malaysia by total asset value (TAV), as its TAV will grow from RM1.03 billion to RM1.56 billion with the completion of the acquisition.

This, it added, will enhance the overall presence and reputation of Amanahraya REIT among the Malaysian investment community.

AmanahRaya-Kenedix said the acquisition will also enable diversification and enlargement of the portfolio of assets under its management, which is expected to benefit Amanahraya REIT in the long-term as a result of economies of scale.  

The purchase consideration, it said, will be funded via a medium-term note programme with RM450 million notes issues and internally generated funds of RM5 million.

AmanahRaya-Kenedix said there is no additional financial commitments from Amanahraya REIT, except for the capital expenditure to be incurred in the course of its normal operations since Vista Tower is already established and fully operational.
 
The trading of Amanahraya REIT shares has been suspended since yesterday afternoon and will resume trading tomorrow.