Amanah Raya eyes RM2b property trust size in 2008

By BUSINESS TIMES

STATE-OWNED Amanah Raya Bhd aims to boost the size of its property trust to RM1 billion this year and double it in 2008.

AmanahRaya-JMF Asset Management Sdn Bhd managing director Datuk Mohamed Azahari Mohamed Kamil said pending approval by the Securities Commission, it will buy additional properties worth RM700 million by October this year.

“By year-end, the AmanahRaya REIT (Real Estate Investment Trust) will have a total of 13 properties valued at RM1 billion, making it the second largest REIT in Malaysia,” Mohamed Azahari said at the public trustee agency’s headquarters in Kuala Lumpur yesterday. He did not elaborate.

He had earlier witnessed a signing ceremony of the RM96.5 million sale and leaseback agreement between Amanah Raya and its ninth property, the Dana 13 office towers, in Kelana Jaya, Selangor.

This will be the new headquarters for Symphony House Bhd, an IT firm, and is scheduled for completion by 2010.

AmanahRaya-JMF is the fund manager for AmanahRaya REIT and is a merged entity of Amanah Raya Bhd’s subsidiary, Amanah Raya Asset Management Sdn Bhd, and JMF Asset Management Sdn Bhd, in which Amanah Raya Asset has a 70 per cent stake.

Amanah Raya Bhd launched its RM336 million AmanahRaya REIT in February. It is the first REIT in Malaysia to be issued by a state-owned company backed by a common fund of over RM6 billion.

The RM336 million proceeds were used to finance the purchase of eight initial properties. Dana 13 towers are its ninth.

Under the latest deal, Symphony House will lease back the property and provide high capital appreciation to Kumpulan Wang Bersama, which is under the trusteeship and management of Amanah Raya.

The REIT stands to gain an average net yield of 7.8 per cent average for the next 10 years.

“In future we have plans to acquire properties in the region, but for now, we are focusing on Malaysia because our investors want us to become a strong Malaysia property player with yield of more than 7 per cent and distribute 70 per cent of our distributable income,” said Mohamed Azahari.