Category: AmanahRaya
AmanahRaya – thestar
S&P retracts its ratings for AmanahRaya REIT
Standard & Poor’s (S&P) has withdrawn all ratings for AmanahRaya Real Estate Investment Trust (AR-REIT) at the company’s request after the rating agency gave it a “negative” outlook.
The Singapore-based S&P affirmed its BBB- long-term corporate credit rating and axBBB+ Asean scale rating on the company but said the “negative” outlook reflected its assessment that the extraordinary support from the Government could weaken if a proposed transaction between AR-REIT and Perbadanan Kemajuan Negeri Selangor proceeded as planned.
AR-REIT could not be reached for comment. A Singapore-based S&P analyst said he could not disclose the reasons for AR-REIT’s request to withdraw all ratings.
The analyst said the BBB- rating comprised two components its stand-alone credit profile and the “moderate” likelihood of extraordinary Government support, based on S&P’s criteria on government-related entities.
Although AR-REIT enjoys stable and resilient cashflows, high tenant security deposits and an improving market position in the Malaysian real estate investment sector, its credit profile shows a high exposure to the office property segment and increasing leverage.
AR-REIT is majority-owned by state pension fund Kumpulan Wang Bersama (KWB). The trust owns properties including Holiday Villa hotels in Langkawi and Alor Setar as well as Segi College branches in Kota Damansara and Subang Jaya.
The Selangor State Development Corp (PKNS) plans to inject three properties into AR-REIT in exchange for RM165mil cash and a 20% stake in the trust.
If this goes through, KWB’s stake in AR-REIT will be diluted to 43% from 54%. One of S&P’s rating criteria for government-related entities is the support of Government, measured by the latter’s stake in a company.
“The proposed transaction with PKNS may result in the diminishing and perhaps eventual disappearance of Government support for AR-REIT,” the analyst said.
S&P also said in a statement that it could have revised the outlook to “stable” if the transaction with PKNS did not proceed, which would have resulted in KWB maintaining its majority shareholding in AR-REIT.
AmanahRaya – thestar
ARReit expects to grow assets to RM1.8bil next year
KUALA LUMPUR: Malaysia’s fourth largest Real Estate Investment Trust (REIT), Amanah Raya Real Estate Investment Trust (ARREIT), expects its assets to grow 40% to RM1.8bil next year from RM1bil currently.
Amanah Raya Bhd(ARB)group managing director Datuk Ahamd Rodzi Pawanteh said this year it would increase the total asset value to RM1.3bil, with the injection of three properties owned by the Selangor State Development Corporation (PKNS).
“This will be our fourth injection and the final acquisition for this year since our inception with RM340mil in 2007,” he told reporters at the signing ceremony of REIT agreements between Amanah Raya Bhd and PKNS here today.
Ahmad Rodzi said the total acquisition price for the properties, Menara PKNS, Kompleks PKNS and SACC Mall, was RM270mil, to be satisfied via a combination of consideration units to PKNS and cash.
Upon completion of the Sales and Purchase Agreement (SPA) and Share Agreement, PKNS is expected to own approximately 30% of ARREIT, while ARB’s ownership will be approximately 33%, he explained.
He said that in respect of the Malaysian REITS market share, ARREIT expects to be the third largest in terms of REIT’s property value after the completion of the exercise. “We are going to be number three, behind Sunway REIT and Capital Mall REIT,” said Ahmad Rodzi.
ARREIT was the first government-linked company REIT listed on Bursa Malaysia in February 2007.
Asked if ARREIT was looking at venturing into the overseas market, he said, it would only be possible when it had a sufficient REIT’s asset base.
In conjunction with the property acquisition, both parties also entered into separate lease agreements for each of the three properties, whereby PKNS would lease the properties from ARREIT for a period of 12 years.
This will ensure 100% occupancy of the properties and provide immediate rental income to ARREIT, upon completion of the acquisition exercise.
Meanwhile, PKNS General Manager Othman Omar, said the organisation was very excited over the exercise. “We believe is a win-win transaction for all parties, underpinned by mutually beneficial commercial objectives,” he added.
PKNS, he said, would be able to unlock the market value of the three properties to be injected into ARREIT. “At the same time, it will also gain additional exposure to ARREIT’s existing portfolio of 15 property assets, via our future ownership of approximately 30% of ARREIT,” Othman said.
He also highlighted that PKNS would earn recurrent income from its investment in ARREIT, which it viewed as a high-quality Bursa Malaysia-listed real estate investment trust, with strong growth potential. – BERNAMA
AmanahRaya – BT
AmanahRaya REIT assets to grow 40pc
Malaysia’s fourth largest Real Estate Investment Trust (REIT), Amanah Raya Real Estate Investment Trust (ARREIT), expects its assets to grow 40 per cent to RM1.8 billion next year from RM1 billion currently.
Amanah Raya Bhd (ARB) group managing director Datuk Ahamd Rodzi Pawanteh said this year it would increase the total asset value to RM1.3 billion, with the injection of three properties owned by the Selangor State Development Corporation (PKNS).
“This will be our fourth injection and the final acquisition for this year since our inception with RM340 million in 2007,” he told reporters at the signing ceremony of REIT agreements between Amanah Raya Bhd and PKNS today.
Ahmad Rodzi said the total acquisition price for the properties, Menara PKNS, Kompleks PKNS and SACC Mall, was RM270 million, to be satisfied via a combination of consideration units to PKNS and cash.
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Upon completion of the Sales and Purchase Agreement (SPA) and Share Agreement, PKNS is expected to own approximately 30 per cent of ARREIT, whilst ARB’s ownership will be approximately 33 per cent, he explained.
He said that in respect of the Malaysian REITS market share, ARREIT expects to be the third largest in terms of REIT’s property value after the completion of the exercise.
“We are going to be number three, behind Sunway REIT and Capital Mall REIT,” said Ahmad Rodzi.
ARREIT was the first government-linked company REIT listed on Bursa Malaysia in February 2007.
Asked if ARREIT was looking at venturing into the overseas market, he said, it would only be possible when it had a sufficient REIT’s asset base.
In conjunction with the property acquisition, both parties also entered into separate lease agreements for each of the three properties, whereby PKNS would lease the properties from ARREIT for a period of 12 years.
This will ensure 100 per cent occupancy of the properties and provide immediate rental income to ARREIT, upon completion of the acquisition exercise.
Meanwhile, PKNS general manager Othman Omar said the organisation was very excited over the exercise.
“We believe is a win-win transaction for all parties, underpinned by mutually beneficial commercial objectives,” he added.
PKNS, he said, would be able to unlock the market value of the three properties to be injected into ARREIT.
“At the same time, it will also gain additional exposure to ARREIT’s existing portfolio of 15 property assets, via our future ownership of approximately 30 per cent of ARREIT,” Othman said.
He also highlighted that PKNS would earn recurrent income from its investment in ARREIT, which it viewed as a high-quality Bursa Malaysia-listed real estate investment trust, with strong growth potential. — Bernama
AmanahRaya – BT
Buy, target price RM1.16
MAYBANK Investment Research is keeping its “Buy” call on AmanahRaya Real Estate Investment Trust (ARREIT) (5127) for its strong, resilient organic earnings growth and attractive 9.4 per cent 2011 yield.
Its near-term catalysts are yield-accretive acquisitions (expected to be more than 7 per cent yield) and the potential emergence of new shareholders.
“This could raise our 2011-2012 earnings forecasts by 0.1-10 per cent, ARREIT’s shareholder profiles and provide additional funding source for future acquisition,” the research house said.
It maintains its earnings forecasts and discounted cash flow derived target price of RM1.16 per share.
Maybank Investment also noted that ARREIT was said to be close to securing a few assets (retail and office buildings) in the Klang Valley from a government-linked company.
Total value of the assets is estimated to be up to RM300 million and their purchase will be funded through a debt equity mix.
Post-acquisitions, ARREIT’s total asset value will increase by up to 33 per cent to around RM1.2 billion from RM913.3 million currently.
Its management aims to hit RM1.5 billion asset size by June next year.
AmanahRaya – thestar
ARREIT aims to grow assets to RM1.5bil
AmanahRaya Real Estate Investment Trust (ARREIT) is targeting to grow its total assets to RM1.5bil in the next two years from RM748mil currently by injecting new properties into its portfolio and improving the value of its existing assets.
ARREIT manager AmanahRaya-REIT Managers Sdn Bhd chief operating officer Abas A. Jalil said ARRM was now evaluating the possibility of injecting more properties into its REIT.
“We are looking at acquiring office buildings, warehouses and hotels in the Klang Valley, Penang, Johor Baru and Kota Kinabalu.
“These buildings have a similar asset class. They have reputable tenants, a long-term lease and generate a stable income stream,” he told StarBiz after ARREIT unitholders’ meeting yesterday.
Abas said ARREIT unitholders had passed the resolution for the acquisition of Selayang Mall (in Selayang) and Dana 13 in Ara Damansara for RM227mil. The acquisition, to be completed by early next month, would boost its total asset value to RM1.002bil.
He said ARREIT was buying the properties at a good value.
“The Selayang Mall’s value is RM132mil but we are purchasing it at RM128mil while Dana 13, which is valued at RM107.8mil, is being bought at RM99mil.”
“We have carefully evaluated the assets. For Selayang Mall, the tenancy mix comprises good brands while Dana 13 is the corporate headquarters for Symphony House Bhd. They moved into the premises in late 2009 and they are under a guaranteed lease for 10 years,” he said.
Abas said plans were in place to better manage its existing assets. “We are talking to all our lessees for the future enhancement of their asset values,” he said.
He added that the acquisition of the two properties would allow ARREIT to provide better returns to unitholders.
“We are looking at 7.29 sen for this year after the acquisition of the two properties,” he said. ARREIT returned 7.15 sen to each unitholder in 2009.
AmanahRaya – BT
AmanahRaya REIT eyes 2 properties
AmanahRaya REIT has proposed to acquire two properties valued at a total of RM227 million from Amanah Raya Bhd, as trustee for Kumpulan Wang Bersama.
The properties concerned are the six-storey Selayang Mall at Gombak for RM128 million and a 13-storey stratified office building which forms part of the Dana 1 Commercial Centre known as Dana 13 for RM99 million.
In conjunction with this, AmanahRaya REIT proposed to undertake a proposed placement of such number of new units to raise proceeds of RM119 million at an issue price to be determined later.
It also proposed to undertake an increase in the existing approved fund size of 431,553,191 units, by such number of placement units to be issued under the proposed placement.
“The proceeds arising from the proposed placement of RM119 million will be utilised to part-fund the proposed acquisitions and defray the estimated expenses relating to the proposals,” AmanahRaya REIT said in a statement today.
According to the company, the proposed acquisitions are in line with its investment objective, which is to provide the unitholders with stable distribution income by acquiring yield accretive assets and good quality properties with strong recurring rental income.
“The acquisition will increase AmanahRaya REIT’s total asset value from RM752.53 million to about RM1,007.49 million,” it said.
It added that the acquisitions are expected to be implemented and completed between the first and second quarter of 2010. — BERNAMA