Amanah REIT announced plans to acquire a private education asset for RM31.4 million in Glenmarie, Shah Alam, Selangor as part of the group's move to enhance its portfolio to be a leading educational REIT with high-quality income-generating assets.

The acquisition includes the novation of the existing tenancy agreement with Tinta Pendidikan Sdn. Bhd, securing a 15-year lease on a triple net lease basis. This arrangement it said is anticipated to provide AmanahRaya REIT with a stable and growing income stream, with an entry of 6% net yield bolstered by pre-agreed double-digit rent revisions every three years. The property's prime location in the well-established commercial and light industrial area of Glenmarie, with excellent connectivity via major highways and proximity to the Glenmarie LRT Station, further enhances its value within the Trust's portfolio.

The freehold property is currently occupied by Tinta Pendidikan Sdn. Bhd., a well-regarded private education provider offering preschool, primary, and secondary education.

The acquisition, which will be funded through AmanahRaya REIT's existing bank financing and internally generated funds, is expected to be completed by the first quarter of 2025. The Manager assured that the transaction will not affect the total units in issue or the substantial unitholders' holdings of the Trust, with the purchase price being paid entirely in cash. Upon completion, the property is expected to contribute positively to AmanahRaya REIT's earnings from the financial year ending 31 December 2025 onwards.