AmanahRaya Real Estate Investment Trust (“ARREIT”) announced on 29 August 2024 that Pacific Trustees Berhad, the trustee of ARREIT, has entered into a sale and purchase agreement for the proposed acquisition of a 6-storey detached commercial building located at Temasya Glenmarie, Selangor Darul Ehsan (“Property”) from Stuttgart Holdings Sdn Bhd for a cash consideration of RM31.40 million. The Property is presently used as a private education institution.
 
The terms of the acquisition include a novation of an existing tenancy (subject to four consecutive automatic renewal terms of three years each) in respect of the Property with the current tenant, Tinta Pendidikan Sdn Bhd.
 
The acquisition is in line with ARREIT’s investment objectives and its growth strategy to provide the unitholders with stable income distribution and to achieve growth in the net asset value per unit of ARREIT, by acquiring high quality, earnings accretive properties with strong recurring rental income. The acquisition will be accretive to ARREIT’s distributable income and adds to the portfolio of properties that will benefit ARREIT in the long term.
 
The acquisition is expected to be completed by the first quarter of 2025.
 
Skrine acted for ARREIT in the transaction. The team comprised Partners, Sharifah Shafika Alsagoff and Hafidah Aman Hashim, and Associate, Ili Rawaida Mohmad Radhwan.
 
Media coverage of the transaction can be accessed at:
 
https://theedgemalaysia.com/node/724878
 
https://www.thestar.com.my/business/business-news/2024/08/29/amanahraya-reit-acquires-private-education-asset-in-glenmarie-shah-alam-for-rm314mil