AME proposes REIT for i-Park properties

PETALING JAYA: AME Elite Consortium Bhd has proposed to establish and list an industrial real estate investment trust (AME REIT) on Bursa Malaysia’s Main Market, with an investment portfolio comprising assets to be identified from existing industrial leasing properties owned by subsidiaries of AME.

Currently, AME owns and manages industrial leasing properties at its industrial parks in Johor, namely i-Park@SiLC, iPark@Indahpura, i-Park@Senai Airport City, and District 6. Additionally, the i-Parks are supported by workers’ dormitories namely iStay@Indahpura and iStay@Senai Airport City which provide accommodation to customers’ workers.

The proposed AME REIT would also provide stable and recurring income to investors, with at least 90% of its income to be distributed to unitholders. Furthermore, individual and noncorporate REIT investors are expected to benefit from lower tax rate compared to prevailing corporate income taxes.

The establishment and listing of AME REIT is subject to valuation to be conducted on the investment properties, finalisation of the structure, terms and conditions, the necessary approvals, waivers and/or consents from the relevant authorities, and the approval of the shareholders of AME.

Group managing director Kelvin Lee Chai said the REIT would be a very unique proposition to retail and institutional investors alike, as it allows them access into a growing portfolio of highoccupancy properties with resilient demand.