Johor Bahru: AME Elite Consortium Bhd has announced its intention to sell three industrial properties located in Johor, totaling 3.579 hectares, to AME Real Estate Investment Trust (AME REIT) for RM100.8 million. The transaction, which is a related party deal, involves one property in i-Park @ Senai Airport City and two in i-TechValley at Southern Industrial Logistic Clusters.
According to BERNAMA News Agency, AME REIT disclosed that these under-construction properties include single-storey detached factories with mezzanine offices and ancillary buildings, collectively covering an agreed lettable area of approximately 2.7549 hectares. This sale aligns with both AME Elite’s and AME REIT’s growth strategies.
For AME Elite, the divestment facilitates reinvestment into its industrial park developments and strengthens its recurring income through strategic investment in AME REIT. Meanwhile, AME REIT will bolster its portfolio with quality, income-generating assets, ensuring stable returns for its unitholders.
AME Elite’s executive director and group CEO, Dylan Tan Teck Eng, stated, “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.” The transaction is expected to accelerate the advancement of i-TechValley in Johor, Northern TechValley in Penang, and growth initiatives in the Klang Valley.
The proceeds from the sale will primarily fund the ongoing development of i-TechValley, future industrial property projects, and investment ventures, including land acquisitions and joint ventures, within 36 months of completing the transaction.
This marks AME Elite’s third industrial property sale to AME REIT, supplementing another ongoing transaction of four industrial properties valued at RM119.5 million. Upon concluding these disposals, AME Elite anticipates an estimated net gain of RM25.8 million, while AME REIT’s pro forma total asset value is projected to increase by approximately 20.6% to RM856.7 million.
Following this and the completion of the remaining three properties from the ongoing transaction, AME REIT’s asset portfolio will expand to 44 assets, with a market value rising to RM911.2 million. The transaction is scheduled for phased completion from the third quarter of 2025 to the first quarter of 2026.