KUALA LUMPUR, March 6 (Bernama) -- Since its listing in September 2015, Al-Salām Real Estate Investment Trust (“Al-Salām”) has grown the size of its portfolio from RM903 million to around RM1.2 billion via the acquisition of Mydin Hypermarket Gong Badak and an additional 17 QSR properties, based on triple net lease arrangement, in August 2018 and March 2019 respectively. To date, Al-Salām’s triple net lease assets, secured via long term lease contracts for the 44 QSR properties and Mydin Hypermarket Gong Badak are the major contributors to its net property income.

Going forward, Al-Salām has the potential to further expand its property portfolio through more acquisitions and tapping into its major unitholder, Johor Corporation’s (JCorp) vast selection of prime assets, especially the industrial estate assets.

As for KOMTAR JBCC, Al-Salām is in the midst of rebalancing the tenancy mix by bringing in more specialty F&B and lifestyle-centric tenants through the refurbishment of available space.

“We believe that these initiatives will drive Al-Salām’s earnings per unit growth moving forward. The REIT also expects a positive impact on our earnings due to the reduction in Islamic financing costs arising from the recent overnight policy rate cuts”, said Encik Wan Azman Bin Ismail, the CEO of Damansara REIT Managers, who also manages the Al-Aqar Healthcare REIT.

Al-Salām has announced a Proposed Private Placement of up to 20% of its existing units to raise an indicative gross proceeds of approximately RM92.80 million, mainly for the purpose of reducing its bank borrowings, working capital funding and capital expenditure. The pro-forma financing over total assets ratio is projected to reduce from 0.48 times to 0.43 times (assuming RM64.96 million of existing financing is repaid from the proceeds). AmInvestment Bank has been appointed as the principal adviser and placement agent for the Proposed Private Placement.

SOURCE: AmBank Group 

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Encik Sahrin bin Munir
Head of Business Development and Investor Relations
Damansara REIT Managers Sdn Bhd
Tel: 03-7932 1692
Email: Sahrin@drmsb.com.my

--BERNAMA