KUALA LUMPUR, Dec 15 — Am ARA REIT Managers Sdn Bhd, the manager of AmFIRST REIT (Real Estate Investment Trust), has signed a sale and purchase agreement (SPA) with Techvance Properties Management Sdn Bhd to sell a 13-storey office building for RM36 million.
In a filing to Bursa Malaysia today, AmFIRST REIT said Maybank Trustees Bhd will act solely in its capacity as trustee for and on its behalf.
“The proposed disposal will enable AmFIRST REIT 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.
“It will also provide the trust with greater financial flexibility to explore potential future acquisitions which are more yield accretive,” it said.
The 13-storey AmBank Group Leadership Centre in Jalan Puncak, off Jalan P. Ramlee, comprises a 10-storey office block, a penthouse and a three-level car park.
“The expected realised net gain on disposal is approximately RM8.4 million (after real property gain tax) and this would contribute positively to the earnings of AmFIRST REIT for the financial year ending March 31, 2016,” it said.