KUALA LUMPUR: Amanah Raya Bhd, which announced a strategic collaboration with Japan's largest independent real estate management company Kenedix Inc today, aims to double the fund size of AmanahRaya REIT in five years' time.
Group managing director Adenan Md Yusof said it aims to grow the REIT's fund size to RM2 billion from the current RM1 billion. AmanahRaya REIT's portfolio includes 14 properties as at Sept 30, 2016 with dividend yield of 6-7%.
"In the future, we hope to give better returns in terms of dividend yield and capital appreciation," he told reporters at a signing ceremony today.
Kenedix, via its wholly-owned subsidiary KDA Capital Malaysia Sdn Bhd, is acquiring 85.98 million units of AmanahRaya REIT representing 15% of total units in circulation for an aggregate consideration of RM85.98 million.
It is also acquiring 735,000 ordinary shares of AmanahRaya REIT Managers Sdn Bhd (ARRM) representing a 49% stake for RM5.14 million at a consideration of RM7 per share.
Post acquisition, Amanah Raya will maintain the controlling stake of 51% in ARRM. It will hold a 47% stake in the REIT.
The parties also signed a shareholders' agreement and a memorandum of understanding on a bridge fund for the purpose of acquiring and nurturing assets before injection into the REIT.
Adenan said the bridge fund will be used to identify, acquire and nurture assets to be injected into the REIT when the assets achieve returns of 6-7%. These assets include an office building and an industrial building in Malaysia.
"We are looking at a few and we are in negotiations. It will be quite substantial," he added.
Kenedix specialises in managing real estate funds, private pension funds and is the sponsor company for six public listed REITs and one private REIT in Japan.
Kenedix's portfolio comprises conventional asset classes such as office buildings, logistic facilities, residential properties and retail outlets as well as new asset segments such as senior heathcare facilities and data centres.
source by:http://www.thesundaily.my/node/415958