Sunway REIT Management Sdn. Bhd., the Manager of Sunway Real Estate Investment Trust (“Sunway REIT”), is pleased to announce that RHB Trustees Berhad, as trustee of Sunway REIT (“Trustee”), has entered into a sale and purchase agreement (“SPA”) to acquire two contiguous parcels of land together with the existing buildings erected thereon in Sungei Way, Petaling Jaya, Selangor for a purchase consideration of RM60.05 million.
The Property sits on a 3.63 acres freehold industrial land which consists of a double-storey building and a five-storey building, with a total gross floor area (“GFA”) of 497,487 sq.ft..
The Proposed Acquisition will be fully funded by Sunway REIT’s existing debt programme. Its gearing ratio is expected to increase from 37.2% as at 31 December 2021 to 37.6% upon the completion of the Proposed Acquisition. The post-acquisition gearing is considerably below the statutory gearing limit permissible by the Guidelines on Listed Real Estate Investment Trusts by Securities Commission Malaysia. Based on the gearing limit, Sunway REIT has a large debt headroom to pursue acquisition opportunities from its Sponsor and third parties.
Dato’ Jeffrey Ng, the CEO of Sunway REIT Management Sdn. Bhd. remarked, “Our strong balance sheet places Sunway REIT in a position of strength to continue our active pursuit of yield-accretive acquisition opportunities that are present in the market.”
The Proposed Acquisition is expected to be completed in the second half of 2022, subject to the fulfilment of the condition precedents in the SPA. Upon completion of the Proposed Acquisition, Sunway REIT’s property value will increase to RM8.80 billion, from RM8.74 billion as at 31 December 2021. The asset portfolio composition for the Industrial & Others segment will increase from 1.1% to 1.8% upon completion of the Proposed Acquisition, based on property value as at 31 December 2021.
Dato’ Jeffrey Ng commented, “The Proposed Acquisition is in line with Sunway REIT’s strategic direction to expand its asset portfolio in the industrial segment. The Property is strategically located in an established industrial zone in Petaling Jaya, easily accessible via major roads and expressways such as Federal Highway and Lebuhraya Damansara-Puchong. The Manager is actively looking for quality anchor lessees, given the size and strategic location the Property.”
Dato’ Jeffrey Ng concluded, “The Proposed Acquisition marks Sunway REIT’s second opportunistic acquisition in the current financial year and fortifies our efforts to grow Sunway REIT’s property value to RM14 – 15 billion, in line with TRANSCEND 2027 strategic targets. The Proposed Acquisition will further strengthen our position as the second largest REIT in Malaysia, measured by property value.”
