AME REIT expanding its industrial property to more states

The company is seeking for expansion into Selangor, Johor and Penang


AME Real Estate Investment Trust (AME REIT) is embarking on industrial property portfolio expansion into central and northern Peninsular Malaysia to primarily leverage the future development project of its sponsor AME Elite Consortium Bhd.

The company is also pursuing yield accretive industrial properties from its third-party vendor and plan to distribute 100% of its distributable income obtained upon its listing to Bursa Malaysia which will be made on a quarterly basis.

“Our REIT is pretty much focused on the industrial in our existing portfolio assets such as industrial property and industrial related property,” AME REIT CEO Wai Leo Chan said during the IPO prospectus launch.

In terms of the growth trajectory, it is derived predominantly through the sponsor’s assets and the acquisition of third-party assets. 

“We seek to expand in Selangor, Johor and Penang as we are optimistic these regions to have potential local and foreign direct investment,” I REIT Managers Sdn Bhd chairman and ED Simon Lee Sai Bon said.

To date, AME REIT has an initial portfolio of 34 industrial and industrial-related properties in Iskandar Malaysia, Johor, valued at RM557 million with a full tenancy.

The group today officially launched its IPO prospectus in conjunction with its debut into Main Market Bursa Malaysia.

There will be no proceeds raised as the IPO does not involve any issuance of new units.

“Although there is no issuance of new units, our proceeds are supported strongly by the industrial property, workers’ dormitory and warehouse for the acquisition.

“Under these segments, essentially our manufacturing facilities and warehouse are occupied with the high-quality industrial tenant that also accommodates its workers,” Chan said.

“So, we expect the workers from the manufacturing facilities are biometrically registered to the dormitories and that will also increase the occupancy rates and contribute to the growth,” Chan added.

The IPO exercise entails an offering of 254.8 million units, representing 49% of the total 520 million units in AME REIT. 

However, not all the units issued right now will go to the market and 80 million units are allocated to the institutional offerings and selected investors.

With the IPO prospectus launch, applications for the retail offering open today and will close on Aug 24, 2022.

Barring unforeseen circumstances, AME REIT will be listed on the Main Market of Bursa Malaysia on Sept 20, 2022. 

It is targeted to achieve revenue of RM41 million for the financial year ended 2023.