Malaysia-listed office and industrial REIT, AmanahRaya REIT, disclosed on 16 June that it has entered into a sale and purchase agreement with Cyberview Sdn Bhd and Setia Haruman Sdn Bhd to acquire a four-storey office building in Cyberjaya for MYR40 million.

The property, Enterprise Building 2, sits on freehold land measuring approximately 8,312 square metres and bears the the postal address of Block 3502, Jalan Teknokrat 5. Enterprise Building 2 is currently occupied by Contraves Sdn Bhd.

Upon acquisition, the property will continue to be leased out to the existing tenant for MYR300,000 a month, for a period of five years and a potential extension of another three years thereafter.

“Barring unforeseen circumstances, the board believes that the proposed acquisition is expected to contribute positively to the future earnings of AmanahRaya REIT”, said the REIT’s manager in its statement on the acquisition which is expected to complete in the third quarter of 2016.

AmanahRaya REIT will fund the acquisition through a combination of cash (20%) and term loan (80%). Its gearing is expected to increase from 26% to 29.5% once the acquisition is complete.

Units of AmanahRaya REIT last changed hands on the Bursa Malaysia at MYR0.90.