Integrated industrial space solutions provider AME Elite Consortium Bhd entered into an underwriting agreement with I REIT Managers Sdn Bhd, (a wholly-owned subsidiary and the Manager of AME REIT), RHB Trustees Berhad (the Trustee of AME REIT) and Hong Leong Investment Bank Berhad (HLIB) today, in conjunction with the upcoming initial public offering (IPO) of AME REIT on the Main Market of Bursa Malaysia Securities Berhad (Bursa Securities).
The IPO exercise entails an offering of 254.8 million units, representing 49.0% of the total 520.0 million units in AME REIT.
HLIB will underwrite 18.2 million of the offer units, comprising 10.4 million units made available to the Malaysian public and 7.8 million units to eligible Directors and employees of AME Elite and its subsidiaries.
Meanwhile, at least approximately 80.0 million units will be made available for application by Malaysian institutional investors and selected investors, including Bumiputera investors approved by the Ministry of International Trade and Industry. A further up to 156.6 million units will be offered to the shareholders of AME Elite on the basis of 1 unit for every 5 ordinary shares held in AME Elite on the entitlement date to be announced later.
HLIB is the Principal Adviser, Sole Underwriter, and Joint Bookrunner together with RHB Investment Bank Berhad for AME REIT’s listing exercise.
AME REIT is set to be an Islamic industrial REIT that will have an initial portfolio of 31 industrial properties with ongoing leases/tenancies to various local and foreign companies, as well as 3 workers dormitories that mainly cater to the workers of AME Elite’s industrial parks tenants.
As at 15 July 2022, all the 31 industrial properties and 3 workers’ dormitories were 100% tenanted. The industrial properties are all located within and near AME Elite’s industrial parks in Johor, namely i-Park@Senai Airport City, i-Park@Indahpura, i-Park@SiLC and District 6@SiLC. The 3 workers’ dormitories are located adjacent to i-Park@Senai Airport City and i-Park@Indahpura.
AME REIT will be the main vehicle representing the property investment activity for AME Elite upon its debut on the Main Market. AME Elite will continue to work on its pipeline of property development projects from which AME REIT would be able to source for suitable industrial properties, workers’ dormitories and warehouses in addition to third party properties within Malaysia, in the future.
Simon Lee Sai Boon, Chairman and Executive Director of I REIT Managers Sdn Bhd said:
“Today’s underwriting signing marks another significant milestone in the IPO journey of AME REIT, bringing us one step closer to listing our industrial and industrial-related assets, and enabling us to meet our target to complete the exercise by the third quarter of 2022.
The IPO process is progressing well, as evidenced by the recent signing of 34 Sale and Purchase Agreements between AME Elite subsidiaries and RHB Trustees, which is acting on behalf of AME REIT, for the proposed acquisitions of 31 industrial properties and 3 industrial-related properties by AME REIT from the selling subsidiaries of AME Elite for a total consideration of RM557.0 million.
Demand for our purpose-built industrial properties that are mostly designed according to green building criteria to promote sustainability of the environment and situated within a gated and guarded managed industrial park are expected to chart robust and sustainable growth, because they meet the stringent requirements of the multinational and local customers. We believe AME REIT is in good stead to benefit from this boom.
As it is, AME REIT’s portfolio of industrial and related properties are already enjoying high occupancy rates with numerous international clientele. We are therefore confident that AME REIT will be able to generate steady and strong returns in the form of income distribution to unitholders, as well as potential capital appreciation on their investments.”
Source: Business Today
