Industrial asset-focused trust Atrium Real Estate Investment Trust (REIT) is aiming to undertake land acquisitions and asset enhancement initiatives to drive total asset value growth towards a targeted RM1 billion in two years’ time.
Speaking to reporters after the REIT’s extraordinary general meeting, Atrium REIT Managers Sdn Bhd Chief Executive Officer Chan Kum Chong said the REIT is currently exploring suitable lands within the Klang and Shah Alam vicinities for greenfield projects to cater for rising demand.
“It won’t be easy for us to rely on just acquisitions, which means we have to do a bit of greenfield [projects] in the near future. And in order for us to qualify for greenfield, we have to grow into a sizeable REIT of maybe RM1 billion."
“We are giving ourselves two more years. We are already at the halfway mark now,” he added.
Chan said the REIT is also looking into the possibility of undertaking asset enhancement initiatives (AEIs) in the near future, including the upgrading of its existing properties in Shah Alam into double-storey warehouses.
“For [asset] enhancement [initiatives], we have to first do relocation and that is why we will need to go into greenfield to find another piece of land to temporary relocate [the tenants]... As for the capital expenditure, we [might] still have to raise funds through either placement or rights issue."
“However, we can’t do it (AEI) now, as we do not have [the] landbanks yet, so we are looking at maybe year 2021,” Chan said.
As at end-2018, the trust's total asset size stood at RM278 million. Together with its Penang land acquisitions — expected to be completed by end of this year — total asset under its management will increase to RM458 million.
At noon break of 3 June 2019, units of Atrium REIT settled one sen or 0.85% lower at RM1.16 per share, bringing a market capitalisation of RM169.55 million.