ARA Asset Management has announced that AmFIRST REIT has entered into conditional sale and purchase agreements to increase its ownership of the strata office space in The Summit Subang USJ to 92%.

AmFIRST REIT had completed the acquisition of the developer’s retained interests in The Summit Subang USJ for RM260 million ($108.3 million) on Mar 31, 2008. Located within the Subang Jaya Township, about 30 minutes drive from the Kuala Lumpur City Centre and accessible by both the Federal Highway and KESAS Highway, The Summit Subang USJ comprises an office tower, a retail mall and a 332-room hotel with a combined gross floor area of 1.7 million square feet.

The mall caters to a sizeable middle-income population in the township while the hotel, which is master leased to a third party, serves mainly business travellers and some tourists.

Ongoing residential and commercial developments in the surrounding area are expected to increase the vibrancy and patronage of the property, said the REIT manager.

The total purchase consideration for the additional 36,166 square feet of strata office space acquired is RM11.2 million ($4.7 million). With this acquisition, AmFIRST REIT would own a strategic 70% of the combined retail and office space in The Summit Subang USJ in addition to its 100% ownership of the hotel.

The increased ownership would enhance AmFIRST REIT’s strategic control over the development and facilitate the asset management planning and implementation works that the REIT intends to carry out to improve the performance of the whole complex. AmFIRST REIT would soon be commencing a comprehensive retail repositioning exercise to make the retail complex the shopping-cum-entertainment destination of choice in the locality.

John Lim, Group CEO of ARA, said, “We are pleased that AmFIRST REIT has been able to strengthen its strategic hold on The Summit Subang USJ. This would facilitate its asset management plans and is a strong demonstration of AmFIRST REIT’s ability to make yield- accretive acquisitions followed by asset enhancement works to unleash the potential of the asset, thereby delivering returns to unitholders. ARA will continue to look at ways to enhance unitholder returns via appropriate strategies within the various REITs that we manage.”