AmanahRaya Real Estate Investment Trust (ARREIT, Bloomberg: AARET MK), via its trustee company Pacific Trustees Berhad, today completed the transaction of disposing Holiday Villa Beach Resort & Spa Langkawi for RM145.0million.
The transaction will see ARREIT recognising a gain on disposal amounting to RM45.0 million.The gain will be reflected in the financial statements ending 31 December 2024 (FY2024).
YM Tunku Rozita Tunku Abdul Malek, the Managing Director of AmanahRaya-Kenedix REIT Manager Sdn. Bhd. (manager of AmanahRaya REIT) said that, “through this divestment, the proceeds can be utilised for new acquisition, with the objective of moving up the overall yield of our asset portfolio.”
Of the RM145.0 million proceeds, RM70.0 million will be earmarked for repayment of borrowings. Gross gearing of ARREIT will improve to 43.5% on proforma basis, compared to 45.0% of the audited Total Asset Value as at 31 December 2022.
She added, “with that, we hope to create value for our unitholders, in terms of yield improvement and capital appreciation. We are currently in the process of realigning our asset portfolio to include high yielding assets in resilient sectors, such as education, wellness, and industrial (logistics/warehouses).”
The said asset is a 238-room 4-star beach resort hotel occupying three parcels of freehold land in Pantai Tengah, Langkawi. In June last year, Pacifc Trustees Berhad entered into a Sale and Purchase Agreement (SPA) with Plenitude Gateway Sdn Bhd, a wholly-owned subsidiary of Plenitude Berhad.