Atrium REIT to acquire land in Shah Alam for RM45m

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KUALA LUMPUR (July 2): Atrium REIT Managers Sdn Bhd, which is the manager of Atrium Real Estate Investment Trust (Atrium REIT), is looking to buy a parcel of land in Shah Alam from Permodalan Nasional Bhd (PNB) for RM45 million cash. 

In a filing with Bursa Malaysia this evening, Atrium REIT announced that Pacific Trustees Bhd, the trustee of Atrium REIT, has accepted the letter of offer dated June 20 from PNB, in relation to the proposed acquisition.

Atrium REIT said following the acceptance of the letter of offer, it will conduct a due diligence exercise, including an independent valuation within a period of one month. 

It said that the proposed acquisition is in line with Atrium REIT’s investment objectives and growth strategy to provide the unit holders with stable income distribution, as well as to achieve long term growth in the net asset value per unit of Atrium REIT. 

"The manager believes that the proposed acquisition represents a good opportunity for Atrium REIT to further expand its existing portfolio of investment properties in Selangor. The property is located in Seksyen 16, Shah Alam, which is a prime and mature industrial estate, home to various multinational firms with close proximity," it said.  

The property in question is a 174,757 sq ft land with a single storey factory building and ancillary area, comprising guard house, TNB sub-stations and a surau, as well as a single storey office-cum-canteen building. 

Atrium REIT said the proposed acquisition is expected to be funded through a combination of internally-generated funds, bank borrowings and/or proceeds to be raised from the fund raising exercise, the proportion of which will be determined at a later date.