KUALA LUMPUR (July 18): AmanahRaya Real Estate Investment Trust (KL:ARREIT) said on Thursday that it has signed a long-term tenancy agreement with Alfa International College Sdn Bhd for its property in Subang Jaya.

The tenancy agreement with Alfa coincides with the expiry of the tenancy agreement with SEGi College on Feb 28, and it spans a lease term of 18 years on a triple net lease arrangement. The college is expected to begin operations by the fourth quarter of the year, said the trust in a statement.

The property, located within Subang Jaya in USJ1, boasts a 12-storey purpose-built building fitted for educational purposes, held under a freehold tenure.

The agreement with Alfa represents a significant step towards enhancing the REIT’s net property income, AmanahRaya REIT managing director Tunku Rozita Abdul Malek said. The property is expected to generate a consistent income stream with positive rent reversion every three years, she said.

“We are thrilled to welcome Alfa as our new long-term tenant,” Tunku Rozita said. “We look forward to a fruitful partnership with Alfa and are confident that their presence will contribute significantly to the success of this property.”

On its part, AmanahRaya REIT will retain the asset as an educational base while “exercising asset re-allocation strategy to improve our distribution per unit and share price”, she added.

The REIT owns and manages a portfolio of 11 properties nationwide, covering educational, office, industrial, retail, hospitality and wellness sectors.

AmanahRaya REIT units were down one sen or 2.99% at 32.5 sen at 3.27pm on Thursday, giving it a market capitalisation of RM186.3 million.