Newly listed AME Reit says it has identified three industrial properties for potential acquisition in the next 12 months, which could potentially increase its portfolio to 37 investment properties by the third quarter of 2023.
All three properties are located in the industrial parks of AME REIT’s sponsor, AME Elite Consortium Berhad with an expected lease term fixed tenure of 10 years, Plots 43 and 15 targeted for commencement in the third quarter of 2022, and Plot 16 in the third quarter of 2023.
I REIT Managers Sdn Bhd Chairman and Executive Director Simon Lee said with the final retail price fixed at RM1.13 per unit, AME REIT’s market capitalisation amounts to approximately RM588.0 million upon its Initial Public Offering. AME REIT debuted on the Main Market of Bursa Malaysia, opening at a premium of RM1.14 per unit, with the first trade involving 1.06 million units. It rose to a high of RM1.20 per unit within half an hour of its debut.
With the potential pipeline of three identified properties to come onstream into its portfolio in the next 12 months, the number of properties will increase to a total of 37 units. The listing gives, AME REIT ample debt headroom of up to approximately RM240.8 million to pursue potential acquisitions, based on the prescribed limit of 50.0% of total asset value. Its unaudited pro forma statement of financial position as at the date of its establishment would have total indebtedness of approximately RM46.5 million, representing approximately 8.1% of its estimated total asset value of RM574.5 million.
The IPO exercise entailed an offering of 254.8 million units, representing 49.0% of the total 520.0 million units in AME REIT.
