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Property News

Atrium REIT acquires Shah Alam property for RM41 mil cash in related-party deal

KUALA LUMPUR (Nov 2): Atrium Real Estate Investment Trust’s (Atrium REIT) asset manager Atrium REIT Managers Sdn Bhd (ABSB) has acquired buildings and leasehold land in Shah Alam, Selangor from a related party, Amazing Blitz Sdn Bhd (ABSB), for RM41 million cash.
In a filing with Bursa on Thursday, the REIT said the purchase consideration represents a marginal discount of RM500,000 or 1.2% to the appraised market value of RM41.5 million as appraised by an independent valuer on Oct 3, 2023.
The land, measuring 24,295.208 sq m, is surrounded by a mixture of residential, commercial, and industrial developments and is near i-City, a notable landmark.
Chan Kam Tuck, the major unitholder of Atrium REIT is deemed interested in the proposed acquisition by him being the substantial shareholder (via indirect interest of 59% through Glory Blitz Industries Sdn Bhd) and a director of ABSB.
In addition, Chan Kum Chong, the chief executive officer of the Atrium REIT is deemed interested in the proposed acquisition because of him being the brother of Kam Tuck.
ABSB had previously acquired the property from Network Foods Industries Sdn Bhd, an indirect wholly-owned subsidiary of Pan Malaysia Corp Bhd in November last year, also for RM41 million cash.
The purchase consideration will be funded via a combination of internally-generated funds of Atrium REIT and/or bank borrowings, the exact proportion of which will be determined later.
Atrium REIT closed at RM1.40 on Thursday, translating into a market capitalisation of RM371.8 million.
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Source: EdgeProp.my

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