Amanahraya REIT buying Vista Tower for RM455m

PETALING JAYA: Amanahraya Real Estate Investment Trust or Amanahraya (ARREIT), is acquiring Vista Tower on Jalan Tun Razak, , for RM455 million cash.

In an announcement to the stock exchange, it said AmanahRaya-Kenedix REIT Manager Sdn Bhd, the REIT’s management company, had entered into a conditional sale and purchase agreement with The Intermark Sdn Bhd for the proposed acquisition.

The purchase sum represents a 13% discount to Vista Tower’s current market value of RM523 million.

“Pursuant to this, the proposed acquisition is value accretive as there will be an immediate unrealised gain of RM67.1 million to be recognised by ARREIT,” it noted.

The proposed acquisition is in line with ARREIT’s key investment objective to invest in properties that are yield accretive, value accretive and are able to continuously generate sustainable return to the unitholders. Currently Vista Tower’s occupancy rate stands at 74.4%.

With the proposed acquisition, ARREIT’s total asset value will increase from RM1.04 billion as at June 30, 2017 to RM1.56 billion.

Trading in ARREIT shares was suspended pending the material announcement and will resume today.

Source: The Sun Daily

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