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SunREIT to buy land in Shah Alam for RM91m
Published on: Thursday, January 12, 2017

Kuala Lumpur: Sunway Real Estate Investment Trust (SunREIT) has entered into a conditional sale and purchase agreement with Champion Edge Sdn Bhd to acquire a piece of leasehold land and buildings erected on it in Shah Alam, for RM91.5 million.

In a filing to Bursa Malaysia, SunREIT said the proposed acquisition was in line with its key investment objective to acquire and invest in properties that are yield accretive.

"The proposed acquisition is expected to benefit unitholders by improving the diversification of our portfolio of assets, as well as, broadening the sources of rental income that it currently receives," it said.

Other rationale for the proposed acquisition included to improve the earnings and the distribution per unit to its unitholders, as well as, to increase its income stability through the sustainable income stream over the unexpired lease term of approximately 18 years.

"The proposed acquisition is not expected to have any material effect on the earnings of SunREIT for the financial year ending June 30, 2017.

"It is expected to contribute positively to the earnings of SunREIT in the long-term," it added. – Bernama

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