Industrial space solutions provider AME Elite Consortium Berhad has gotten its shareholders’ approval for the proposed listing of its Real Estate Investment Trust, which entails the listing of and quotation for 520 million undivided interest (units) on the Main Market of Bursa Malaysia Securities Berhad.
The group will be offering 254.8 million units, representing 49.0% of the total 520 million units in AME REIT comprising up to 156.6 million Restricted Offer For Sale (ROFS) units to entitled AME shareholders on the basis of 1 ROFS unit for every 5 ordinary shares held. Additionally, 7.8 million units to eligible employees and directors of AME and subsidiaries, and 10.4 million units to the Malaysian public. Approximately 80 million units will be offered to Bumiputera investors approved by the Ministry of International Trade and Industry, as well as institutional investors and selected investors.
At an illustrative offer price of RM1.00 per unit, AME is estimated to potentially raise RM254.8 million in proceeds from the listing of AME REIT. Of the illustrative proceeds to be raised, RM105 million will be used to repay borrowings, RM4.5 million for expenses relating to establishing the REIT, and the balance RM145.3 million for future industrial property development and investment projects including land acquisitions and joint ventures.
Kelvin Lee Chai GMD said, “With our shareholders’ approval, we are now a step closer to finalising the listing of AME REIT on Bursa Securities in the second half of 2022, which will unlock the value of our industrial and industrial-related assets.
AME shareholders had also approved the proposed disposals of 31 industrial properties and 3 industrial-related properties from AME to AME REIT for a total consideration of RM557.0 million, to be satisfied via the proposed issuance of 520 million units in AME REIT and cash consideration of RM37 million.
AME REIT is an Islamic REIT that will have an initial portfolio of 31 industrial properties with ongoing leases/tenancies to various local and foreign companies, as well as 3 workers dormitories that mainly cater to the workers of AME’s industrial park tenants. As at 31 March 2022, the average occupancy rates of the industrial properties and workers dormitories stood at 97.1% and 100% respectively.
On future prospects of AME REIT, Kelvin Lee Chai added: “With the high occupancy rate of the industrial properties in AME REIT’s portfolio, we are confident that AME REIT will be able to provide its unitholders with a stable and growing distribution of income in addition to any potential capital appreciation on their investments.”
The proposed listing of AME REIT is expected to be completed by the third quarter of 2022.