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BUSINESS

Sunway REIT buys industrial property in Petaling Jaya for RM60.05 mln

23/06/2022 09:43 PM

KUALA LUMPUR, June 23 (Bernama) -- Sunway Real Estate Investment Trust’s (Sunway REIT) trustee, RHB Trustees Bhd has entered into a sale and purchase agreement to acquire two parcels of land together with the existing buildings erected thereon in Sungei Way, Petaling Jaya for RM60.05 million.

In a statement today, Sunway REIT’s manager Sunway REIT Management Sdn Bhd said the proposed acquisition would be fully funded by the Trust’s existing debt programme.

“Its gearing ratio is expected to increase from 37.2 per cent as at Dec 31, 2021, to 37.6 per cent upon completion,” it said.

The property sits on a 1.47-hectare freehold industrial land, which consists of a double-storey and five-storey buildings.

Sunway REIT Management said the post-acquisition gearing was considerably below the statutory gearing limit permissible by the Guidelines on Listed Real Estate Investment Trusts by the Securities Commission Malaysia.

Based on the gearing limit, Sunway REIT has a large debt headroom to pursue acquisition opportunities from its sponsor and third parties, it said.

“Our strong balance sheet places Sunway REIT in a position of strength to continue our active pursuit of yield-accretive acquisition opportunities that are present in the market,” chief executive officer Datuk Jeffrey Ng said.

The proposed acquisition is expected to be completed in the second half of 2022.

Upon completion, Sunway REIT’s property value will increase to RM8.80 billion, from RM8.74 billion as at Dec 31, 2021.

-- BERNAMA


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