Malaysia-listed office REIT, AmFirst REIT, announced on 31 March that it has completed the disposal of a 13-storey office building located at Lorong P. Ramlee in Kuala Lumpur for MYR36 million (USD9.31 million).
The property, known as the AmBank Group Leadership Centre, was sold to Malaysian company Techvance Properties Management Sdn. Bhd.
The REIT’s intention to dispose the property was first announced in December 2015.
“The proposed disposal enables the trust to realise its investment in the property at an attractive price considering its age and limited scope for growth on the asset value based on current use of the property”, said AmFirst REIT then in a filing with the Bursa Malaysia.
“The proposed disposal will also provide the trust with greater financial flexibility to explore potential future acquisitions which are more yield accretive”, the REIT added.
The expected realised net gain on the property’s disposal is approximately MYR8.4 million and the REIT has said that it intends to return this to unitholders as income distribution for the financial year ending 31 March 2016.
The disposal will reduce AmFirst REIT’s gearing from 38.3% to 37.0%. The REIT now has a remaining portfolio of nine properties across Malaysia.
Units of AmFirst REIT closed about 1.35% higher from its previous finish on the Bursa Malaysia to end at MYR0.75.