Malaysia-listed Shari’ah compliant real estate investment trust Al-Aqar REIT (AQAR:MK) has entered into a sale and purchase agreement Puteri Nursing College to acquire two parcels of freehold land near Nilai, Negeri Sembilan together with buildings erected thereon for MYR77.8 million.
The buildings to be acquired consist of an academic block with two electrical substations and a hostel block with a refuse storage chamber. The 8-storey academic block has a maximum capacity of 2,500 students while the 11-storey hostel black can accommodate up to a maximum of 1,020 students.
Nilai town is located about 10 km to the north-east of the properties to be acquired. The nursing college is also located about 18 km away from KLIA and the newly completed KLIA2 airports.
According to a release issued 3 October, the acquisition follows a purchase in 2009 when Al-Aqar REIT acquired two parcels of land with buildings erected thereon from the same college in Seremban, Negeri Sembilan.
Upon completion of the acquisition, Al-Aqar REIT will enter into a leaseback agreement with the nursing college.However no details of this lease proposal is yet available.
Al-Aqar REIT has indicated that the acquisition, which is expected to be completed in about three months, will be financed by a combination of funds to be raised from a new Islamic financing facility and units fundraising.
Units of Al-Aqar REIT are currently listed on the Bursa Malaysia at MYR1.40.