KUALA LUMPUR: AmFIRST Real Estate Investment Trust (AmFIRST REIT) has confirmed that it is acquiring a Mydin store in Bukit Mertajam, Penang — its first investment in the north — confirming a report in The Edge Financial Daily published yesterday.

The trust sent out media invites yesterday afternoon to a signing ceremony to be held at 5pm today for the proposed acquisition, which will be held at the Berjaya Times Square Hotel and Convention Centre here.

Separately, in a filing with Bursa Malaysia later yesterday evening, Am ARA REIT Managers Sdn Bhd, the manager of the trust, said it is finalising the terms and conditions of the acquisition of the Mydin store in Penang with the vendor.

“Appropriate announcement to Bursa Malaysia will be made in accordance with the listing requirements as and when required,” it added.

The store, which is at the tail end of construction and is expected to commence operations as a wholesale hypermarket in the third quarter of this year, according to the daily’s report, is owned by multi-format retailer Mydin Mohamed Holdings Bhd.

The daily also reported that the acquisition was expected to cost AmFIRST REIT (fundamental: 0.6; valuation: 2.7) an estimated RM250 million.

Quoting a source, the daily said the purchase is a move by AmFirst REIT to balance its portfolio of commercial assets, which is made up predominantly of office space.

“AmFIRST REIT may look for other similar deals,” the source said in reference to the retail store buy.

AmFIRST closed unchanged at 94 sen yesterday, giving it a market capitalisation of RM645.22 million.

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This article first appeared in The Edge Financial Daily, on April 15, 2015.