AmFIRST plans to grow asset size by a fifth

PETALING JAYA: AmFIRST Real Estate Investment Trust (AmFIRST) hopes to grow its asset size by a fifth annually, predominantly comprising acquisitions of office buildings.

As at March 31, its total asset size stood at RM1.02 billion. The assets are managed by Am ARA REIT Managers Sdn Bhd.



By September this year, it would have grown its asset size by 13 per cent as it completes the purchase of two office buildings in Cyberjaya valued at RM133 million. This will bring total assets under its management to RM1.16 billion.

Yesterday, Mayban Trustees Bhd - on behalf of AmFIRST - signed a deal to buy Prima 9 and Prima 10 office buildings in Cyberjaya for RM72 million and RM61 million respectively from Complete Event Sdn Bhd, confirming a Business Times article.

Complete Event is part of Prima Group of Companies.

Am ARA REIT Managers chief executive officer Lim Yoon Peng said the purchases will contribute gross revenue of RM12.68 million in the first year.

Together the properties have a net property yield of 7.8 per cent and a distribution per unit of 0.68 sen in a year.

"We are hoping to give a marginally higher dividend than 9.75 sen (given) last year (to our unitholders)," Lim told reporters at a press conference.

He added that it would also hinge on whether borrowing costs go up further.

The acquisitions will increase its total net lettable area by 9 per cent to 2.56 million sq ft.

Average occupancy of eight buildings will improve to 88.10 per cent from 83.57 per cent from six buildings.

The latest acquisitions will be financed via borrowings. Accordingly, the group's gearing will reach 45.84 per cent of total assets.

This means that it can still make purchases to the tune of RM92 million without having to raise any funds.

AmFIRST's six properties include Bangunan AmBank Group, Menara AmBank Group and AmBank Group Leadership Centre in Kuala Lumpur.

In Petaling Jaya, it owns Menara Merais, Kelana Brem Towers and The Summit Subang USJ.

By Business Times