AmFIRST REIT’s RM331m Menara AmBank disposal to AmBank turns unconditional

AmFIRST REIT’s RM331 million sale of Menara AmBank to AmBank (M) Bhd became unconditional after all conditions precedent were fulfilled. Unitholders approved the related-party transaction with 96.14% of votes cast in favour. The disposal will reduce the trust’s gearing to 33.94% from 46.60%.

PETALING JAYA (Sept 21) — AmFIRST Real Estate Investment Trust’s (AmFIRST REIT) proposed RM331 million disposal of Menara AmBank to AmBank (M) Bhd has become unconditional after all conditions precedent were fulfilled.

In a Bursa Malaysia filing on Monday (Sept 21), AmFIRST REIT said the sale and purchase agreement (SPA) became unconditional on the same day. Earlier on Monday, unitholders approved the related-party transaction at an extraordinary general meeting, with 58.07 million votes, representing 96.14% of the votes cast, in favour of the resolution. The poll result was validated by Deloitte Malaysia Assurance Sdn Bhd, the independent scrutineer appointed by AmREIT Managers Sdn Bhd, the manager of AmFIRST REIT.

Under the SPA, the disposal is to be completed on or before three months from the date all conditions precedent are fulfilled or waived, with a further one-month extension available. The transaction entails the disposal of the 46-storey Menara AmBank office tower, including seven levels of elevated car park, by Maybank Trustees Bhd, acting solely as trustee for AmFIRST REIT, to AmBank.

The freehold property at No 8, Jalan Yap Kwan Seng, Kuala Lumpur, has a net lettable area of 453,419 sq ft and 557 parking bays. It was 77.8%-occupied as at March 31, 2026, and generated rental income of RM22.22 million and net property income of RM12.13 million for the financial year ended on that date.

The RM331 million disposal consideration represents a 0.61% premium to Menara AmBank’s appraised market value of RM329 million as at March 31, 2026. The property’s audited net book value was RM328.75 million as at the same date. AmFIRST REIT expects to record an estimated net loss on disposal of RM8.72 million after taking into account about RM10.97 million in estimated expenses.

Of the proceeds, an estimated RM225 million will be used to redeem Menara AmBank and discharge the existing charges and private caveat over the property. Another RM95.03 million is intended for the partial repayment of revolving credit facilities with AmBank, while RM10.97 million is allocated for disposal-related expenses. On a pro forma basis, the disposal would reduce AmFIRST REIT’s gearing to 33.94% from 46.60% as at March 31, 2026.

The deal is a related-party transaction because AmBank, the purchaser, is a major unitholder of AmFIRST REIT. AmFIRST REIT said the disposal would allow it to unlock value from a mature, lower-yielding asset, improve portfolio efficiency and strengthen its financial position. At a media briefing on Monday, AmFIRST REIT CEO Chong Hong Chuon said Menara AmBank had weighed on the trust’s overall portfolio occupancy, with the building’s occupancy in the high-70% range.