AmFIRST Real Estate Investment Trust (AmFIRST REIT) is seeking unitholders’ approval for the proposed RM331 million cash disposal of Menara AmBank to AmBank (M) Berhad, as the REIT moves to reduce debt and reposition its portfolio towards higher-yielding assets.
AmREIT Managers Sdn Bhd, the manager of AmFIRST REIT, said it has issued a circular to unitholders on the proposed transaction and will convene an Extraordinary General Meeting (EGM) on Sept 21, 2026 to seek approval.
The EGM will be held at 11am, or immediately after the conclusion of AmFIRST REIT’s 14th Annual General Meeting on the same day.
The proposed sale forms part of the REIT’s ongoing portfolio rationalisation and capital recycling strategy, aimed at optimising asset performance, strengthening financial flexibility and positioning the trust for sustainable long-term growth.
A key impact of the disposal would be a significant reduction in AmFIRST REIT’s gearing.
Based on the pro forma effects disclosed in the circular, the REIT’s gearing is expected to decline to approximately 33.9% from 46.6% upon completion of the transaction — a reduction of 12.7 percentage points.
Proceeds from the sale will primarily be used to settle secured borrowings and partially repay outstanding financing facilities.
AmREIT said this is expected to generate annual interest cost savings, eliminate the negative yield spread associated with Menara AmBank and result in an accretive financial impact for the REIT.
AmREIT Managers chief executive officer Chong Hong Chuon said the transaction provided an opportunity to unlock value from a mature, lower-yielding asset while strengthening the trust’s balance sheet.
