Atrium REIT's Atrium Shah Alam 2. The REIT has acquired another property in Shah Alam. (Photo: Atrium REIT)

Malaysia-listed Atrium REIT announced on 4 October that it has entered into a sale and purchase agreement to acquire an industrial property in Shah Alam, Selangor for MYR23 million (USD5.5 million).

The property, which comprises of a double storey office with two adjoining single storey factories, features net lettable area of approximately 85,000 square feet, and sits on freehold land measuring approximately 140,000 square feet.

The asset is currently 100% occupied by a single tenant known as Nagatron Engineering Sdn Bhd, and features the local address of number 17, Persiaran Sabak Bernam in Section 26 of the Shah Alam Industrial Estate.

“The proposed acquisition is expected to be accretive to Atrium REIT’s distributable income”, said the REIT in a filing with the Bursa Malaysia on the same day.

According to Atrium REIT, the acquisition will be funded partly with bank borrowings, which are expected to increase the REIT’s gearing ratio from 27% to 30.3%.

The property is expected to be inducted by December 2016, said the REIT.

Units of Atrium REIT last finished the trading day about 1% lower from its previous close on the Bursa Malaysia to end at MYR1.07.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.