KUALA LUMPUR (April 25): Al-’Aqar Healthcare Real Estate Investment Trust (Al-’Aqar REIT) is actively targeting to acquire yield-accretive properties from KPJ Healthcare Bhd as part of its asset expansion plan.

The proposed exercise will be funded through a combination of unit issuance and cash via bank borrowings, it said in a filing with Bursa Malaysia on Thursday.

Al-’Aqar REIT said it plans to initiate a private placement to raise funds primarily for financing repayment, lowering gearing levels, and preparing for future acquisitions, with the approval of the resolutions from the 12th Annual General Meeting (AGM).

“This strategic move is set to enhance Al-`Aqar’s portfolio, contributing towards achieving an asset value of RM3 billion by 2028,” it said, adding that the fund currently has a portfolio asset value of RM1.64 billion.

“This acquisition is also set to enhance the future earnings and distribution per unit of Al-`Aqar,” it added.

Damansara REIT Managers Sdn Bhd chairman and independent non-executive director Datuk Mohd Redza Shah Abdul Wahid said Al-`Aqar is poised to expand its footprint in the healthcare REIT industry, ensuring its long-term sustainability and growth.

“I am optimistic about the future of Al-`Aqar and our ability to deliver on our promises of growth and stability,” he said.

During the 12th AGM on Thursday, the fund also passed a resolution on a proposal to increase the existing approved fund size of Al-`Aqar from 839.6 million units to a maximum of one billion units pursuant to the proposed authority to allot and issue new units.

Damansara REIT Managers is the manager of Al-’Aqar REIT.