AmFIRST REIT to invest RM80m on the Summit

By BERNAMA

KUALA LUMPUR: AmFIRST Real Estate Investment Trust (AmFIRST REIT) plans to invest RM80 million to upgrade and refurbish the Summit Subang USJ Mall with modern design concept.

Trust Manager, Am ARA REIT Managers Sdn Bhd said the mall would be given an extensive outdoor refurbishment with glass wall and would spot a fresh new look in a bid to enhance the vibrancy of businesses there.

Speaking at a media briefing on REIT oultlook here today, Am ARA acting chief executive officer, Zuhairy Md Isa, said the refurbishment would enable the Summit to be repositioned, and going forward, it was expected to give a good income stream in an escalated manner.

He said the company expected to get its return on investment for the renovation at estimated 15 per cent per year or in seven years.

The Trust Manager has been progressively undertaking asset enhancement initiatives (AEI) and repositioning works on its property investment to upgrade the quality of assets.

Zuhairy said for the last financial year, a total of RM12.3 million was spent for asset enhancement on Bangunan AmBank Group, Ambank Leadership Centre

and Wisma AmFirst.

“Our core AEI projects in 2014/2015 would be the refurbishment of Menara AmBank which is in progress and rebranding of The Summit Subang USJ, scheduled

to be completed by July 2015,” he added.

Meanwhile, on its performance for the financial year ended March 31, 2014 (FY14), AmFIRST REIT recorded gross revenue and net property income of RM112.8

million and RM76.5 million, respectively, up by three per cent from the previous year.

It had also registered a seven per cent increase in net realisable income available for distribution at RM50.3 million compared with RM46.9 million in FY13, which translated into 7.32 sen realised earnings per unit.

“The Trust continued to record better performance despite the challenging market condition, led by the contribution from Jaya 99 Melaka, interest savings from lower borrowings and improved operational efficiency.

“At the same time, it also managed to reduce the impairment loss on trade receivables via its continuous sound credit control,” said Zuhairy.

AmFIRST REIT board declared a final income distribution of 3.70 sen per unit for the six-month period ended March 31 this year, and had paid an interim

distribution of 3.65 sen per unit on December 5 last year.

The total distribution of 7.35 sen per unit was an increase by 8.0 per cent from 6.81 sen per unit paid a year earlier.

The trust’s gearing ratio stood at 32.7 per cent for FY14 and this provided sufficient room to gear up in the future for potential yield accretive and strategic acquisition, added Zuhairy.

Read more: AmFIRST REIT to invest RM80m on the Summit – Latest – New Straits Times http://www.nst.com.my/business/latest/amfirst-reit-to-invest-rm80m-on-the-summit-1.597730#ixzz31q2FX0ML