KUALA LUMPUR: AME Elite Consortium Bhd has proposed to establish and list an industrial real estate investment trust (AME REIT) on the Main Market of Bursa Malaysia Securities Bhd.
The leading integrated industrial space solutions provider said the investment portfolio of AME REIT would comprise assets to be identified from existing industrial leasing properties owned by subsidiaries of AME.
"AME recently announced that it is expanding its i-Stay@Indahpura workers' dormitories by building two new dormitory blocks via capital expenditure of RM25 million, to cater to the increasing requirements of its i-Park clients.
"The new dormitory blocks are expected to be completed in 2021," it said.
Currently, AME owns and manages industrial leasing properties at its industrial parks in Johor, namely i-Park@SiLC, i-Park@Indahpura, i-Park@Senai Airport City, and District 6.
Additionally, the i-Parks are supported by workers' dormitories, namely i-Stay@Indahpura and i-Stay@Senai Airport City which provide accommodation to customers' workers.
Group managing director Kelvin Lee Chai said integral to the group's i-Parks' success are AME's growing portfolio of industrial leasing properties and workers' dormitories, which are key to supporting the growth of our i-Parks and have proven to be well-received by global companies.
Chai said these are high quality assets that we have continuously invested in as we expanded our i-Parks over the years.
"We believe that this REIT would be a very unique proposition to retail and institutional investors alike, as it allows them access into a growing portfolio of high-occupancy properties with resilient demand.
"Not only that, this REIT would be an instrument of growth for AME, by unlocking value and enabling the Group to continue pursuing our plans of expanding the landbank for our industrial parks segment, and increasing the capacity of our construction division to sustain our momentum," he said.
According to AME, the proposed AME REIT would also provide stable and recurring income to investors, with at least 90 per cent of its income to be distributed to unitholders.
Furthermore, it said individual and non-corporate REIT investors are expected to benefit from lower tax rates compared to prevailing corporate income taxes.
"The establishment and listing of AME REIT is subject to valuation to be conducted on the investment properties, finalisation of the structure, terms and conditions, the necessary approvals, waivers and/or consents from the relevant authorities, and the approval of the shareholders of AME.
"Further details on AME REIT will be announced when all terms and conditions have been finalised," it added.