Amanah Raya REIT to buy Vista Tower

KUALA LUMPUR: Amanah Raya Real Estate Investment Trust (REIT) is acquiring Vista Tower in Jalan Tun Razak, here, for RM455 million, which would increase its total asset value to RM1.56 billion.

AmanahRaya-Kenedix REIT Manager Sdn Bhd, the REIT manager, has entered into a conditional sale and purchase agreement with The Intermark Sdn Bhd for the proposed acquisition.

The REIT manager said the acquisition would elevate it into the top 10 REIT ranking in Malaysia by total asset value (TAV).

“With the acquisition, the TAV will increase from RM1.04 billion to RM1.56 billion as at June 30.”

The exercise would enable the manager to further diversify and enlarge its portfolio of assets under management, it added.

“This it is expected to benefit the REIT in the long term as a result of economies of scale. As the value of its portfolio continues to grow, the REIT would be able to reduce its management expense ratio and ultimately increase its returns to the unitholders.”

Despite the concerns over the large incoming supply of space for office sector, the REIT manager said prospects of Vista Tower were expected to be positive in view of its strategic location, good accessibility and high quality specifications that met the requirements of major and reputable companies.

“Hence, there will be opportunities for Vista Tower to increase its occupancy levels, which in turn will provide a stable income stream to the REIT,” it said.