AME Elite To Sell 3 Industrial Properties In Johor For RM100.8 Mln To AME REIT

KUALA LUMPUR, March 24 (Bernama) -- AME Elite Consortium Bhd has proposed to sell three industrial properties in Johor, totalling 3.579 hectares, to AME Real Estate Investment Trust (AME REIT) for RM100.8 million in a related party transaction.

AME REIT said in a statement today that it will acquire the properties from the subsidiaries of its sponsor, AME Elite, comprising one industrial property in i-Park @ Senai Airport City and two industrial properties in i-TechValley at Southern Industrial Logistic Clusters.

“These under-construction properties feature single-storey detached factories with mezzanine offices and ancillary buildings, with a total agreed lettable area of approximately 2.7549 hectraes. The transaction supports the growth strategies of both AME Elite and AME REIT,” the company said.

For AME Elite, the sale enables reinvestments in its pipeline of industrial park developments and enhances its recurring income stream through its strategic investment in AME REIT.

In turn, AME REIT enhances its portfolio with quality income-producing assets, generating stable income and distributions to unitholders.

“The proposed transaction strategically supports our expansion plans by unlocking the value of leased assets, allowing us to redeploy capital into developing future industrial parks, while strengthening our recurring income base through our investment in AME REIT.

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“With robust demand for our industrial parks and integrated industrial space solutions, the transaction enables us to accelerate the progress of i-TechValley in Johor, Northern TechValley in Penang, and our strategic growth initiatives in the Klang Valley through our partnership with KLK Land and ongoing MoU with SD Guthrie,” said AME Elite executive director and group chief executive office Dylan Tan Teck Eng.

AME Elite intends to allocate the majority of proceeds from the transaction towards the ongoing development of i-TechValley, future industrial property developments, and investment projects, including land acquisitions and joint ventures, which are expected to occur within 36 months upon completion of the transaction.

This transaction is AME Elite’s third industrial property sale to AME REIT, in addition to the ongoing transaction of four other industrial properties valued at RM119.5 million.

Upon completion of the proposed disposals, AME Elite said it is expected to recognise an estimated gain on disposal, net of tax and share by non-controlling interests of approximately RM25.8 million, while, the pro forma total asset value of AME REIT is expected to rise by approximately 20.6 per cent to RM856.7 million following the transaction.

Then, upon completion of the proposed acquisitions and the remaining three properties from the ongoing transaction, AME REIT’s portfolio will comprise 44 assets with an increased market value of RM911.2 million.

The transaction is expected to be completed in phases from the third quarter of 2025 to the first quarter of 2026.

-- BERNAMA