Press Release


AMANAHRAYA REIT

 KUALA LUMPUR – Malaysia's premier public trustee, Amanah Raya Berhad (“ARB”) expects to raise RM 336 million ringgit from the planned flotation of its first AmanahRaya REIT on the Main Board of Bursa Malaysia. 

ARB said the total RM336 million raised via the issuance of units as well as borrowing will be utilised to finance the acquisition of 8 identified properties to be injected into the REIT. 
In addition, the institutional investors will be offered 119.6 million units while another 9.2 million units will be allocated to retail investors. 

AmanahRaya REIT is the first government company REIT to be listed on Bursa Malaysia in February 2007. Furthermore, the issue was rated BBB- by an International Rating Agency, Standard & Poors and this is a few notches below Malaysian sovereign rating, A.

“AmanahRaya REIT offers robust potential rental income, underpinned by long lease maturity profile, high tenant security deposits, above average asset quality with high occupancy rates and minimal capital expenditure requirements.” The Chairman, Dato’ Dusuki said in his speech.

Besides being the first REIT to be issued such commendable rating from the International Rating Agency, more importantly, it reflects the underlying risk diversification and visible support from the Government. 

REIT has attracted a great deal of investors since its introduction in Malaysia in 2006 with Axis-REIT being the first to be listed, mainly because of their relatively high yields and steady income. 

AmanahRaya REIT will be managed by AmanahRaya-JMF Asset Management Sdn Bhd, owned by Amanah Raya Berhad. It is a merged entity between Amanah Raya Asset Management Sdn Bhd and JMF Asset Management Sdn Bhd via a 70% acquisition by Amanah Raya Berhad which was concluded on 18 August 2005. AmanahRaya-JMF Asset Management is currently managing almost RM6 billion in assets.

Properties to be injected into AmanahRaya REIT are as follows:


Property

Location

Sector

Holiday Villa Alor Setar

Alor Setar, Kedah

Hospitality

Holiday Villa Langkawi

Langkawi, Kedah

Hospitality

Wisma AmanahRaya

Kuala Lumpur

Commercial

Permanis Factory

Bangi, Selangor

Industrial

SEGi College

Subang Jaya, Selangor

Education

Block A&B South City Plaza

Seri Kembangan, Selnagor

Commercial

Wisma Amanah Raya Berhad

Kuala Lumpur

Commercial

Wisma UEP

Subang Jaya, Selangor

Commercial

AmanahRaya REIT is expected to be listed in February 2007. 
As part of the efforts of instilling greater corporate governance in the structure, AmanahRaya has appointed its independent Investment Committee consisting of market professionals to oversee the overall running of the issue and more importantly, to ensure all mandates and requirements are sufficiently met.

Memorandum of Understanding
Apart from the signing of the Underwriting Agreement, Amanah Raya Berhad is also forging a strategic partnership with two global institutions, namely Macquarie Group and Faisal Private Bank.
The signing of both MoUs is a show of ARB’s commitment to pursue greater cooperation and partnership particularly in the area of corporate advisory as well as offshore Islamic banking.

Macquarie Bank is a pre-eminent provider of investment banking, commercial banking and selected retail financial services markets both in Australia and major international markets. It was established in 1969. In Australasia, Macquarie provides a full range of investment, financial market and advisory products and services.

Faisal Private Bank (Switzerland) SA is part of the Group which pioneered the Islamic banking and finance industry regulated by the Swiss Federal Banking Commission. The principal shareholder of Faisal Private Bank Switzerland is the Bahrain-based Ithmaar Bank BSC.

The signing ceremony was something to the effect after the management of AmanahRaya and SiTiTrust & Administrator Limited, a Labuan trust company visited Geneva recently.
“Such partnership will allow us to learn from each other, towards improving what we do in our businesses as well as opening up accessibility to new opportunities.” Dato’ Dusuki said.

About AMANAH RAYA BERHAD
Amanah Raya Berhad (ARB), the oldest and premier trust company in Malaysia, was formerly known as the Department of Public Trustee and Official Administrator when it first commenced operation on 1 May 1921. Subsequently, the Department was corporatized on 29 May 1995 and commenced its operation as Amanah Raya Berhad on 1 August 1995.

ARB offers Legacy Management services; Will-Writing, Custodianship and Execution; Legacy Management and Trustee services.  Currently, ARB provides trustee services for 76 unit trust funds valued in excess of RM66 billion, Trustee services for bonds and other financial instruments and investment management.  ARB’s customer-oriented products and services are available at 20 branches all over Malaysia.

 On 28 September 2005, ARB acquired 70% in JMF Asset Management Sdn. Bhd. and established an entity known as AmanahRaya-JMF Asset Management Sdn. Bhd. (ARJMF).  The company provides services which includes single or multiple asset classes equity, fixed income, money market, and property as well as cash management, investment advisory and private equity. Currently ARJMF is managing over RM4.1 billion worth of funds.

Copyright (C) 2006 Amanah Raya Berhad