Non-interested shareholders of AME Elite Consortium Berhad and non-interested unitholders of AME Real Estate Investment Trust have approved the transaction of four fully-leased industrial properties in Iskandar Malaysia worth RM119.5 million.

AME REIT will acquire the four properties from its sponsor, AME Elite, for cash considerations. The properties, two located in i-TechValley at SILC and two in i-Park@Senai Airport City, have a combined agreed lettable area (ALA) of 391,872 square feet (sq. ft.). The properties are currently leased to reputable tenants under long-term agreements ranging from 5 to 10 years, with renewal options.

Dylan Tan Teck Eng, Executive Director and Group CEO said "The strategic divestment of these properties to AME REIT enables AME Elite to optimize our balance sheet by monetizing lease assets and recycling capital into expansion of our industrial parks. AME Elite continues to indirectly enjoy recurring income from the lease properties through AME REIT via future income distributions.

The acquisitions will increase AME REIT's pro forma total asset value by 16.7% to RM828.8 million. Additionally, AME REIT's ALA will expand by 20.9% from 1.9 million sq. ft to 2.3 million sq. ft. The acquisitions will be fully financed via Islamic financing, AME REIT's pro forma gearing is projected to rise to 27.0%.

The proceeds the group said will be partially be used to fund the ongoing development of its i-TechValley project at SILC, a 169.8-acre industrial park with an estimated gross development value (GDV) of RM1.5 billion. While the remaining proceeds is to be allocated toward future industrial property development and investment projects, including land acquisitions and joint ventures.

The acquisitions mark AME REIT's second post-listing transaction with AME Elite, following a previous purchase of three industrial properties in Iskandar Malaysia for RM69.3 million in 2023.