KUALA LUMPUR: Amfirst Real Estate Investment Trust (AmFirst REIT) has proposed to dispose of its property, Menara AmFirst, to Forever Backup Sdn Bhd for RM62 million.
Located in Sungai Buloh, Selangor, the property is a 22-storey office building with three levels of basement car parks erected on freehold land.
AmREIT Managers Sdn Bhd, manager of the transaction opined that considering the age and limited scope for growth of the asset, it is opportune to dispose of this asset to repay existing borrowings to optimise the trust’s gearing level.
"The proposed disposal will not have any effect on the total units of AmFIRST REIT in issue and substantial unitholders’ unitholding in AmFIRST REIT as the disposal price will be satisfied entirely in cash.
"The expected net loss on disposal is approximately RM4.93 million arising from the proposed disposal and will not have significant impact to the earnings of AmFIRST REIT for the financial year ending March 31, 2023,” AMfirst REIT told Bursa Malaysia today.
It said the net proceeds of the exercise, after deducting all fees and expenses relating to the proposed disposal, would be utilised to repay existing borrowings. The net proceeds are expected to be utilised within 12 months from the date of completion of the proposed disposal.
The proposed disposal has been approved by the trustee on April 14, 2022. It is not subject to the approval of the unitholders of AmFIRST REIT and any regulatory authorities.
Barring any unforeseen circumstances, the proposed disposal is expected to be completed by the third quarter of 2022. - Bernama