AmFirst REIT To Buy The Summit Subang USJ For RM260m

AmFirst Real Estate Investment Trust (AmFirst REIT) has proposed to acquire Meda Inc Bhd’s mixed commercial development, The Summit Subang USJ, for RM260mil in cash.  The proposed acquisition would include:

• Menara Summit,The Summit Hotel and a six-storey retail podium,

• This acquisition would be funded with bank borrowing and/or equity, the company.

• it is expected to provide unit holders with higher and more stable distribution with the potential to achieve long-term growth in net asset value

• Am ARA intends to leverage on the expertise of its Singapore-based partner, the ARA Group, to raise the performance level of The Summit Subang USJ. (The ARA Group currently manages three public-listed REITs in

  Hong Kong and
  Singapore, with total assets under management worth about US$4.2bil)

For the vendor, Meda Inc Bhd the sale of The Summit Subang USJ would effectively reduce the group’s gearing and enhance its balance sheet. It will provide the company with the resources needed to expand and grow its core business with the ultimate objective of enhancing shareholder value and returns in the futureBoth parties are expected to finalise the deal by the first quarter 2008. (The Star 2/8/07)