Atrium REIT eyes more assets

Atrium REIT eyes more assets


March 1 2007


ATRIUM REIT Managers Sdn Bhd expects to rope in three more industrial buildings under its real estate investment trust scheme (REIT).
Atrium REIT's chief executive officer Wong Sui Eee said the company which currently has four buildings under its REIT portfolio expects to conclude negotiations by year-end.


"Out of the three buildings, two will have an area of 600,000 sq feet with a value of RM100 million and the other we are still negotaiting with the authorities," Wong said in Kuala Lumpur yesterday.


Wong was at the launch of Atrium Reit's prospectus and the company is slated for listing on the main board of Bursa Malaysia on March 26.


Atrium REIT has an initial approved portfolio in four freehold industrial buildings (two in Shah Alam and one each in Puchong and Rawang) valued at RM154.8 million with an area of 809,668 sq ft leased to reputable and financially strong tenants.


For future plans chairman Datuk Zakaria Meranun said the company aims to increase lettable area to 1.6 million sq ft from 809,668 sq ft currently within the next five years.


It is also eyeing industrial buildings in Penang, Johor Baru, China and Vietnam.


Under its listing exercise, Atrium REIT is offering 75.5 million units of RM1.05 each raising proceeds of RM80 million which it will be used to buy more buildings.


Of the 75.5 million units, 13.5 million will be for the public, two million will be for eligible directors, employees and business associates while the remaining 60 million are for institutional investors.


Aseambankers Malaysia Bhd is the adviser, managing underwriter and sole book runner for the initial public offering.