AmanahRaya Real Estate Investment Trust (AmanahRaya REIT), via its Trustee, Pacific Trustees Berhad, had entered into a Sale and Purchase Agreement (SPA) with Plenitude Gateway Sdn. Bhd. (PGSB), a wholly-owned subsidiary of Plenitude Berhad for the proposed disposal of Holiday Villa Beach Resort & Spa Langkawi located at Pantai Tengah, Langkawi, Kedah Darul Aman, on 28 June 2023 (Proposed Disposal).
The Proposed Disposal entails the sale of 238 rooms 4-star beach resort hotel building occupying three (3) parcels of freehold land at a total cash consideration of RM145 million.
AmanahRaya-Kenedix REIT Manager Sdn. Bhd. (“AKRM”), the manager of AmanahRaya REIT, opined that considering the age and limited scope for growth of the asset, it is opportune to dispose the property to repay existing borrowings to optimize the Trust’s gearing level.
YM Tunku Rozita Tunku Abdul Malek, Managing Director of AKRM, said: “The disposal is in line with AmanahRaya REIT’s realigned growth strategy to own portfolio of high yielding assets, such as tertiary buildings, as well as industrial and commercial properties. This exercise will not only unlock value and realise higher returns on our investment at a favourable price, but also free up our debt headroom to identify more strategic assets, particularly in the education sector.”
The completion of the Proposed Disposal is targeted by the First Quarter of 2024.
AmanahRaya REIT was established on 10 October 2006. It is classified as a real estate investment fund and was listed on the Main Board of Bursa Malaysia Securities Berhad on 26 February 2007.
As at 31 December 2022, AmanahRaya REIT has 12 properties with a fair value of investment portfolio which stood at RM1.412 billion. The properties include office complexes, hotels, higher learning institutions, industrial buildings and retail complex. The properties are located in Johor in the Southern region, Kedah and Langkawi in the Northern region as well as in the Klang Valley covering locations such as Subang Jaya, Damansara Heights, Petaling Jaya, Shah Alam and Kuala Lumpur. This will provide investors an exposure to a diverse geographical and sectorial portfolio that will cushion the impact of specific adversity in any one sector or locality.
