AmanahRaya Real Estate Investment Trust ('AmanahRaya REIT') has announced that Pacific Trustees Berhad, its Trustee, has entered into a long-term tenancy agreement with ALFA International College Sdn Bhd (“ALFA”) for its property in Subang Jaya Selangor. This agreement coincides with the conclusion of the tenancy arrangement with Segi College on 28 February 2024. This development signifies a significant achievement for AmanahRaya REIT, as it partners with a respected institution known for its outstanding art programs, ranking among Malaysia’s preferred educational institutions.
The tenancy agreement with ALFA spans an 18-year lease term on a triple net lease arrangement. The college is expected to begin operations by the fourth quarter of the year. "We wish to continue to retain the asset as an educational base while exercising an asset re-allocation strategy to improve our Distribution Per Unit and share price, respectively," said YM Tunku Rozita.
Situated in the bustling commercial hub of Subang Jaya in USJ1, approximately 15 kilometers southwest of Kuala Lumpur’s city center, the property features a purpose-built, 12-storey building tailored for educational use. It is held under a freehold tenure, occupying a land area of 51,957 sq. ft. with a net lettable area spanning 131,387 sq. ft.
YM Tunku Rozita, Managing Director of AmanahRaya REIT, expressed enthusiasm about ALFA joining as their new long-term tenant. Highlighting ALFA's reputation for delivering quality education, she emphasized how this aligns perfectly with their vision for the property. YM Tunku Rozita anticipates a productive partnership with ALFA and believes their presence will greatly enhance the property's success.
Partnering with ALFA marks a significant stride in boosting AmanahRaya REIT’s net property income. The property is projected to provide a steady income stream, featuring positive rent revaluation every 3 years, thereby benefiting Unitholders. Currently, AmanahRaya REIT manages a diverse portfolio of 11 properties across Malaysia, encompassing educational, office, industrial, retail, hospitality, and wellness sectors.
