KUALA LUMPUR: AME Elite Consortium Bhd and AME Real Estate Investment Trust's (AME Reit) manager I Reit Managers Sdn Bhd have proposed to buy four fully-leased industrial properties in Iskandar Malaysia for RM119.5 million.
The properties - two in i-TechValley and two in i-Park@Senai Airport City - have a combined agreed lettable area (ALA) of 391,872 square feet (sq ft).
The properties consist of single-story detached factories with mezzanine offices and ancillary buildings, currently leased to reputable tenants.
AME Elite executive director and group chief executive officer Dylan Tan Teck Eng said its strategic partnership with AME Reit allows the company to capitalise on the favourable market potential created by higher foreign direct investment (FDI).
Furthermore, Tan said divesting properties to AME Reit enables the company to optimise its capital allocation towards further expansion of its industrial parks, while AME Elite's tenants benefit from the expertise of a dedicated industrial Reit team in managing its long-term needs.
"This mutually beneficial arrangement ensures a steady pipeline of potential assets for AME Reit and aligns our interests for mutual growth," he said.
According to AME Elite, the proceeds from its divestment will partially fund the ongoing development of its i-TechValley project in SILC, a 169.8-acre industrial park with an estimated gross development value (GDV) of RM1.5 billion.
The remaining proceeds will be allocated towards future industrial property development and investment projects, including land acquisitions and joint ventures.
"The transaction is expected to generate a pro forma gain on disposal of approximately RM22.9 million for AME Elite, net of tax and minority interest, resulting in an illustrative 24.1 per cent increase in earnings per share to 18.08 sen from 14.57 sen for the financial year ended March 31, 2024," it added.