First State-Owned REIT

Posted in Malaysia Mutual Fund & Unit Trust |

The first state-owned REIT!

STATE-OWNED Amanah Raya Bhd is set to launch its RM336 million AmanahRaya Real Estate Investment Trust (REIT), comprising eight properties, on February 26.

The public trustee agency is expected to grow the REIT value to RM1 billion and RM2 billion in 2008 and 2009 respectively.

AmanahRaya REIT expects to raise RM336 million from its total offering of 128.8 million units to finance the acquisition of eight properties to be injected into the REIT.

These properties are:

Holiday Villa in Alor Star and Langkawi,
Wisma Amanah Raya (involving two separate properties in Kuala Lumpur),
Wisma UEP in Subang Jaya,
Permanis factory owned by C.I. Holdings in Bangi,
SEGi College in Subang Jaya, and
Blocks A and B of South City Plaza in Seri Kembangan.

REIT is often a good way to hedge against rising interest rates and inflation, since historical data has shown that there’s a strong inverse relationship between REIT prices and interest rates.

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