Glory Blitz seals deals to build 2 warehouses

Glory Blitz seals deals to build 2 warehouses


March 6 2007


GLORY Blitz Industries Sdn Bhd (GBISB), the promoter of Atrium Real Estate Investment Trust (Atrium REIT) and holding company of Atrium REIT Managers Sdn Bhd (Atrium REIT Managers), has secured agreements with two global logistics players to develop two more new warehouses in Shah Alam.

Construction of these logistics warehouses is scheduled to commence by late March 2007.

Atrium REIT Managers chief executive officer Wong Sui Ee said based on the agreements signed, GBISB has committed to constructing a total of about 580,000 sq ft of net lettable area (NLA) for some RM100 million.

The construction of the properties is expected to be completed by the first quarter of 2008.

These properties, when completed, will be offered for sale by GBISB to Atrium REIT, which has first right of refusal for properties that the promoter disposes of for a period of five years from the date of listing.

Atrium REIT currently has a total NLA of 809,668 sq ft and annual rental revenue of about RM14 million.

When successfully acquired, these two properties will increase its NLA by another 71 per cent to about 1.39 million sq ft. The addition will diversify its tenancy base with a focus on global logistics players.

Atrium REIT recently launched its initial public offer on February 28. The offer closes on March 9 2007.

It comprises an offer of 15.5 million units to the Malaysian public and 60 million units to selected institutional investors.

Investors can expect a distribution yield of 7.43 per cent or more from a pool of logistics and industrial properties against a low credit risk profile of global logistics players as tenants, the company said in a statement.

The tentative listing date of Atrium REIT on the main board of Bursa Malaysia is on March 26 2007.