AmFirst Reit completes Kelana Brem buy

By THE EDGE

Am ARA Reit Managers Sdn Bhd (Am ARA), the manager of AmFirst Real Estate Investment Trust (AmFirst REIT), has completed the acquisition of Kelana Brem Towers in Kelana Jaya from Brem Holdings Bhd yesterday.

AmFirst REIT acquired the property for RM85 million, a discount of 3.4% from its independent valuation of RM88 million.

“The acquisition was fully financed through bank borrowings and will raise AmFirst Reit’s gearing to about 25.2%,” Am ARA said in a statement.

Subsequently, AmFirst Reit’s asset base rose by almost 18% to RM575 million, while its property portfolio is enlarged from four to five assets.

The new acquisition also enhances AmFirst REIT’s net lettable area from 1.03 million sq ft to 1.32 million sq ft, making it the largest office-space REIT in the country.

Unitholders stand to enjoy a distribution per unit (DPU) of 7.77 sen and 7.97 sen for the years ending March 31, 2008 and March 31, 2009 respectively post acquisition compared to the forecast DPU of 7.24 sen and 7.39 sen.

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