Al-Salam REIT to conclude three property acquisitions in two years

KUALA LUMPUR: Johor Corp’s (JCorp) Islamic Real Estate Investment Trusts (REIT), named Al-Salam REIT, which made its debut on the Main Market of Bursa Malaysia Securities Bhd yesterday, is expected to conclude three property acquisitions in Kuala Lumpur and Johor in two years.
Al-Salam REIT’s shares opened at RM1.05, hit a low of RM1.04 and high of RM1.13 before ending its maiden day at RM1.05, with over 104.96 million shares traded.
Speaking at a press conference after its listing ceremony, its president and CEO Datuk Kamaruzzaman Abu Kassim said the three properties would be similar to what the group has currently, such as office buildings, shopping malls, food and beverage retail outlets, as well as college buildings.
“We are confident that our future acquisitions will be value-accretive and will improve the yield of Al-Salam REIT going forward as we continue to create long-term value for our unitholders and strive to be the preferred REIT of choice in Malaysia,” he added, noting the acquisition will be satisfied partly via units and cash.
Al-Salam REIT’s initial public offering involved a total of 252.36 million units, of which 240.76 million units (98%) were made available to institutional and selected investors, and the remaining 11.6 million units for the public, at an offer price of RM1 per unit.
Of the RM252.36 million raised, RM242.86 million will be used to pay for the purchase of five properties and the rest, RM9.5 million, for listing expenses.
Al-Salam REIT’s initial portfolio will consist of 31 assets, comprising Komtar JBCC, Menara Komtar, @Mart hypermarket, KFCH College and the chain of 27 KFC and Pizza Hut restaurant outlets nationwide and selected industrial assets.
Commenting on the oversupply of properties in Johor, Kamaruzzaman said Al-Salam REIT is not be affected, as its existing assets are in strategic areas.
Al-Salam REIT’s total assets value stands at RM903.14 million.