Malaysia-listed mixed commercial REIT, AmanahRaya REIT, announced on 20 April that it has entered into an agreement to acquire a single storey factory annexed with three storey office building in Johor Bahru for MYR24 million (USD6.2 million).

The property, No. 11 Jalan Bioteknologi 3, is being purchased from Malaysian company Pipeline Distribution Sdn Bhd and features a gross floor area of approximately 78,360 square feet. The property sits on freehold land.

Upon acquisition, Pipeline Distribution will continue to occupy the property for a fixed term of six years at an initial monthly rental of MYR135,000 a month. The company will have an option to renew the lease for a further three years upon completion of the minimum six years period.

The acquisition will be funded with cash and borrowings, including funds obtained from previous property disposals, said the REIT.

Units of AmanahRaya REIT last changed hands on the Bursa Malaysia at SGD0.89.