KUALA LUMPUR (May 11): AME Elite Consortium Bhd said it has secured its shareholders’ approval for the proposed listing of AME Real Estate Investment Trust (REIT) on the Main Market of Bursa Malaysia Securities Bhd, at an extraordinary general meeting held on Wednesday.
In a statement, the integrated industrial space solutions provider said the greenlit proposal comprises the listing and quotation for 520 million units (undivided interest) on the Main Market of Bursa Malaysia.
“AME Elite shareholders also voted in favour for a proposed offering of 254.8 million units, representing 49% of the total 520 million units in AME REIT.
“The proposed offering comprises up to 156.6 million Restricted Offer For Sale (ROFS) units to entitled AME Elite shareholders on the basis of one ROFS unit for every five ordinary shares held in AME Elite on the entitlement date, 7.8 million units to eligible employees and directors of AME Elite and subsidiaries, and 10.4 million units to the Malaysian public,” it added.
Via the proposed listing of its REIT, AME Elite said it is expected to raise RM254.8 million in proceeds at an illustrative offer price of RM1 per unit.
The group said it has earmarked RM145.3 million of the proceeds to be used for future industrial property development and investment projects — including land acquisitions and joint ventures.
Meanwhile, it added that RM105 million is to be utilised to repay borrowings, and the RM4.5 million balance will be for expenses relating to establishing the REIT.
According to AME Elite, AME REIT is an Islamic REIT that will have an initial portfolio of 31 industrial properties with ongoing leases or tenancies to various local and foreign companies, as well as three workers dormitories that mainly cater to the workers of the group’s industrial park tenants.
“As at March 31, 2022, the average occupancy rate of the industrial properties and workers dormitories stood at 97.1% and 100% respectively,” it added.
AME Elite group managing director Kelvin Lee Chai said that upon receiving its shareholders’ nod, the group is a step closer to finalising AME REIT’s listing on the Main Market in the second half of 2022 — expected to be completed by the third quarter of 2022.
He noted that AME REIT will be AME Elite’s main property investment activity vehicle upon its debut on the Main Market, and added that the group is set to benefit from the symbiotic relationship.
On AME REIT’s prospects, Lee said that the group’s confidence in AME REIT is in view of the high occupancy rate of its portfolio’s industrial properties, which he added will be able to provide its unitholders with a stable and growing distribution of income in addition to any capital appreciation on their investments.
AME Elite’s shares closed unchanged at RM1.68 on Wednesday, giving it a market capitalisation of RM1.08 billion.