Amanah Raya buys office tower for RM96m

Amanah Raya buys office tower for RM96m
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Agreement signed to lease building to Symphony House

KUALA LUMPUR: Amanah Raya Bhd (ARB) is acquiring a 13-storey office tower in Subang – another potential asset for its real estate investment trust (REIT) business – for RM96.5mil.

ARB yesterday signed a sale and purchase agreement with Puncakdana Sdn Bhd and also inked a 10-year-plus-five agreement to lease the tower to Symphony House Bhd.

Speaking at the signing ceremony, ARB director Datin Aminah Pit Abdul Raman said the office tower, Dana 13, had the potential to be injected into its REIT.

Due for completion by December, the tower will have a net lettable area of about 268,218 sq ft.

ARB’s REIT business is managed by its 70%-owned subsidiary AmanahRaya-JMF Asset Management Sdn Bhd.

Datin Aminah Pit Abd Raman with group managing director Datuk Ahmad Rodzi Pawanteh (third from left), Symphony House Bhd group chief officer Datuk Mohamed Azman Yahya (left) and PuncakDana Sdn Bhd managing director Mah Siew Sian (right). With them is ARB company secretary Zainul Abidin Ahmad (second from right).
AmanahRaya-JMF managing director Datuk Mohamed Azahari Kamil said Dana 13’s purchase was part of the acquisition trail to inject five new properties into its REIT, increasing the fund size to RM700mil by end-September from RM336mil currently.

“We hope to reach the RM1bil mark by year-end,” he said.

On Budget 2008, he said as a REIT player, the group expected the Government to reduce withholding tax so that REITs would appeal to more foreign investors.

When AmanahRaya REIT made its debut in February, 65% of the subscribers were foreign investors, he said, adding: “REIT managers should be allowed to invest in at least 10% to 20% of the net asset value of undeveloped properties.”

The group is currently managing, among others, the Holiday Villa in Alor Star, Holiday Villa Langkawi, Wisma Amanah Raya in Kuala Lumpur, Permanis factory in Bandar Baru Bangi, SEGi College and Wisma UEP in USJ, Wisma Amanah Raya in Bukit Damansara, and South City Plaza (Block A/B) in Seri Kembangan.