KUALA LUMPUR: Sunway REIT Management Sdn Bhd, the supervisor of Sunway Real Estate Investment Trust (Sunway REIT) has proposed to purchase two contiguous parcels of land along with the present buildings erected thereon in Petaling Jaya for RM60.05mil.
The property sits on a 3.63 acres freehold industrial land which consists of a double-storey constructing and a five-storey constructing, with a complete gross flooring space (GFA) of 497,487 sq ft.
In a press release, it mentioned the proposed acquisition can be absolutely funded by Sunway REIT’s present debt programme.
Its gearing ratio is anticipated to improve from 37.2% as at Dec 31, 2021 to 37.6% upon the completion of the proposed acquisition.
The post-acquisition gearing is significantly beneath the statutory gearing restrict permissible by the Guidelines on Listed Real Estate Investment Trusts by the Securities Commission.
Based on the gearing restrict, Sunway REIT has a big debt headroom to pursue acquisition alternatives from its sponsor and third events.
“Our strong balance sheet places Sunway REIT in a position of strength to continue our active pursuit of yield-accretive acquisition opportunities that are present in the market,” Sunway REIT Management CEO Datuk Jeffrey Ng mentioned.
The proposed acquisition is anticipated to be accomplished within the second half of 2022.
Upon completion of the proposed acquisition, Sunway REIT’s property worth will improve to RM8.8bil, from RM8.74bil as at Dec 31, 2021.
The asset portfolio composition for the industrial and others section will improve from 1.1% to 1.8% upon completion of the proposed acquisition, primarily based on property worth as at Dec 31, 2021.