AME REIT acquires third industrial property in Iskandar Malaysia for RM26.5mil

KUALA LUMPUR: AME Real Estate Investment Trust (AME REIT) has completed the acquisition of the third industrial property of Plot 16 at i-Park @ Indahpura (Plot 16 Indahpura) in Iskandar Malaysia from its sponsor, AME Elite Consortium Bhd for RM26.5mil.

“The completion of Plot 16 Indahpura’s acquisition today was ahead of the earlier estimated timeline of the first quarter of 2024, following the construction completion by the sponsor, the issuance of the Certificate of Completion and Compliance (CCC) by regulatory authorities, and the rental commencement of the lease,” the industrial REIT said in a statement.

The 98,249 sq ft property has been fully leased to HQPack Sdn Bhd, its sixth facility in i-Park @ Indahpura, for a 10-year term with an option to renew for a further three years.

The acquisitions of the first 2 industrial properties – Plot 15 at i-Park @ Indahpura and Plot 43 at i-Park @ Senai Airport City – were completed on March 24, 2023.

Altogether, AME REIT’s properties under management has risen to RM668.0mil, consisting of 34 industrial properties with an agreed lettable area of approximately 1.9 million sq ft and three industrial-related properties of workers’ dormitories.

“The timely construction completion and issuance of the CCC of Plot 16 Indahpura underscores the sponsor’s alignment with AME REIT’s objective, enabling AME REIT to enjoy earlier-than-expected earnings accretion and rewarding our unitholders with growing distribution of income,” I REIT Managers Sdn Bhd chief executive officer and executive director Chan Wai Leo said.

“We remain steadfast in growing our portfolio, by sourcing for potential industrial property acquisitions as well as proactively undertaking enhancement initiatives on our existing asset portfolio. The latter leverages on our sponsor’s expertise in customisation and asset enhancement initiatives to offer bespoke solutions to our discerning clients.”