AmREIT to increase assets under management by 45%

AmREIT is confident of improving the performance of The Summit retail mall to attract more shoppers and provide them with a satisfying shopping-cum-lifestyle experience

PETALING JAYA: Am ARA REIT Managers Sdn Bhd (AmREIT), the manager of AmFIRST Real Estate Investment Trust (AmFIRST), increased the assets under management by 45% to RM835mil after acquiring all the developer’s units at The Summit Subang USJ.

Director Cheah Tek Kuang said on Monday he was confident of improving the performance of The Summit retail mall to attract more shoppers and provide them with a satisfying shopping-cum-lifestyle experience.

The purchase of the unsold units was the last stage of AmREIT's acquisition of the property, which comprises an office tower, a retail mall, a 323-room hotel and 2,125 car park bays for RM260mil.

Cheah said in a statement the acquisition marked another milestone for AmFIRST after the recent completion of its purchase of Kelana Brem Towers in Kelana Jaya in June last year.

With this acquisition, AmFIRST had executed two sizeable acquisitions with asset values totalling RM350mil within 15 months of listing, he said, adding this was a significant 70% growth from the initial listing portfolio.

“AmFIRST will continue to look for acquisition opportunities to maximise shareholders’ value. We are looking to achieve sustainable long term growth in total returns (in terms of income distribution and capital growth) of AmFIRST REIT units,” he added.

The acquisition was structured with a guaranteed net property income yield on a stepped-up basis over four years for the retail, office and car park. The hotel would be leased back to the vendor for five years and an additional five years on a stepped-up basis also.

The structure would offer unit holders yield protection via the guaranteed minimum net income and also upside potential via the hotel profit-sharing arrangement, the statement said.

The acquisition would boost the distribution per unit (DPU) by an approximately two sen up to the year ending March 31, 2009.

By The Star