AmanahRaya REIT buys Cyberjaya office for RM40m

PETALING JAYA: AmanahRaya Real Estate Investment Trust (AmanahRaya REIT) has entered into an agreement to acquire a freehold land with a four storey purpose-built office building in Cyberjaya for RM40 million.
It told the stock exchange yesterday that the property with a gross floor area of 93,804 sq ft was bought from the proprietor Cyberview Sdn Bhd and the developer Setia Haruman Sdn Bhd.
AmanahRaya REIT will fund about 20% of the purchase price in cash and the balance 80% via a term loan.
The property is currently being occupied by Contraves Sdn Bhd until 2021 at an initial monthly rental of RM300,000 per month. The tenant has expressed interest to extend the lease up to year 2024.
"The proposed acquisition is expected to have positive effect on the earnings of AmanahRaya REIT for financial year ending Dec 31, 2016 as the proposed acquisition is expected to be completed within second quarter of financial year 2016," it said.
The deal is, however, expected to contribute positively to its future earnings following completion of the proposed acquisition in the third quarter of financial year 2016.