KUALA LUMPUR (Dec 18): Sunway Real Estate Investment Trust’s (Sunway REIT) trustee RHB Trustees Bhd has inked a conditional sale and purchase agreement with Best Corridor Venture Sdn Bhd to acquire an industrial property in Prai, Penang, for RM66.8 million.

In a statement, Sunway REIT said the property is located on land spanning 4.21 hectares with leasehold tenure expiring on Oct 22, 2052, and to be extended to 60 years after the completion of the proposed acquisition.

“The property has a gross floor area of 307,487 square feet, which is fully (100%) tenanted by three reputable multinational corporations, namely the anchor tenant, Premium Sound Solutions, a Belgian sound products manufacturer, together with a Japanese logistics company and an American information management services company,” it said.

It said the acquisition is projected to generate an initial net property income yield of approximately 7.6% based on the purchase consideration.

“The proposed acquisition will be fully funded by Sunway REIT’s existing debt facilities and is targeted to be completed in the third quarter of 2024,” it added.

Sunway REIT Management Sdn Bhd chief executive officer Clement Chen said the purchase signifies its continuous efforts to expand Sunway REIT’s footprint in the industrial segment.

“This marks Sunway REIT’s second proposed acquisition in 2023 and the third industrial property in Sunway REIT’s asset portfolio.

“The proposed acquisition will improve Sunway REIT’s asset portfolio mix while progressing towards our Transcend 2027 target for ‘services, industrial and others’ segments to comprise 20%-30% of property value by 2027,” he added.