Amanah Raya-MoU signed for US$250mil REIT

Managing director Datuk Ahmad Rodzi Pawanteh  of Amanah Raya Group on its Reit:

• Amanah Raya signed a memorandum of understanding (MoU) with the Gapura Prima Group of Indonesia to set up a US$250mil regional real estate investment trust (REIT) targeted for listing on the Singapore Stock Exchange by year-end.  
• The focus will be on the retail and hospitality sectors. Five retail malls in Indonesia (for example in
  Jakarta,Solo,
  Surabaya and
  Bandung) and two in
  Malaysia (Klang Valley and Malacca) will be the initial anchor assets injected. The yield for the REIT is expected to be between 8% and 10%.  
• Meanwhile,trust manager AmanahRaya-JMF Asset Management managing director Datuk Mohamed Azahari Kamil confirmed that they have started to engage advisers to look at the valuation and REIT structure to ensure launching by end of the year.. 
• The AmanahRaya REIT in Malaysia has obtained an investible grade from Standard &Poor’s. For the regional REIT,the group hopes to obtain a similar or better rating from Moody’s,thus enhancing the chances for good foreign equity in the Asean REIT market. 
• Singapore is chosen for the regional REIT listing as it is considered the hub for foreign investors and is the second largest REIT market in the region.  
• AmanahRaya REIT is awaiting the finalisation of guidelines for REIT listings on the Jakarta Stock Exchange with a view towards a dual listing for the regional REIT in Singapore and
  Jakarta.  
• Also added that infrastructure development in Indonesia presented huge opportunities,for example,in toll road concessions which the Malaysian REIT is in the process of striking a deal with a Malaysian party as adviser to structure a fund for the purpose of funding toll road operations in
  Indonesia.

AmanahRaya has strategic collaboration with Faisal Private Islamic Bank of Switzerland,the Royal Bank of Scotland and the Macquarie group to look for opportunities in all asset classes. Together with the Faisal group,it had bought a commercial property in Maryland for US$75mil and leased it back to the US government at an annual yield of 8.25% (19/6/07-The Star Malaysia)

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