Japanese Kenedix Inc inks RM91 million in REIT acquisitions with Amanah Raya Berhad
KUALA LUMPUR – In a major landmark deal with the Japanese, Amanah Raya Berhad (AmanahRaya) today announced a strategic collaboration with Japan’s largest independent real estate asset management company Kenedix Inc through the latter’s wholly-owned subsidiary KDA Capital Malaysia Sdn Bhd for RM91 million.
Kenedix acquired 85,982,979 units of AmanahRaya REIT (ARREIT) representing 15 per cent of total units in circulation for an aggregate consideration of RM85,982,979.
The company also acquired 735,000 ordinary shares of AmanahRaya REIT Managers Sdn Bhd (ARRM) representing a 49 per cent stake for RM5,145,000 at a consideration of RM7 per share.
In the acquisition, Amanah Raya Berhad maintains the controlling stake of 51 per cent in ARRM.
The parties also signed a shareholders’ agreement and a Memorandum of Understanding on a bridge fund for the purpose of acquiring and nurturing assets before injection to AmanahRaya REITS.
The two landmark agreements, the shareholders’ agreement and the MoU witnessed by Malaysia’s Minister of Finance II Datuk Johari Abdul Ghani, were signed between Amanah Raya Berhad Group Managing Director Adenan Md Yusof and Kenedix Asia Pte Ltd President Akihiro Nakao representing KDA Capital Malaysia Sdn Bhd.
Also witnessing the auspicious signing were Japanese ambassador to Malaysia Dr Makio Miyagawa, Amanah Raya Berhad Chairman Tan Sri Sabbaruddin Chik, Kenedix Inc, Japan Group CEO Taisuke Miyajima. and Kenedix Inc Japan Director Taiji Yoshikawa
Speaking at the signing ceremony, Adenan said, “For AmanahRaya, there is a wealth of benefits to be gained in this strategic nexus. This collaboration opens opportunities in cross leveraging of knowledge and expertise in asset management initiatives, property development and asset management.
“Kenedix specialises in managing real estate funds as well as managing private pension funds, Japan’s domestic institutional investors and international investors. It is well known as a reputable sponsor company for six public listed REITs and one private REIT in Japan.
“Also importantly for AmanahRaya, it creates a new platform to build strategic and synergistic alliance as well as foster relationship networking with international investors, bankers and developers.”
Kenedix’s portfolio is not limited to conventional asset classes such as office buildings, logistic facilities, residential properties, retail outlets but the Japanese conglomerate is also managing new asset segments such as senior healthcare facilities and data centres.
“There are key learning opportunities here making it an excellent fit in our agenda to quantum leap AmanahRaya REIT’s dexterity and performance prospects.
“It is our hope that this collaboration would improve trading volume to boost AmanahRaya REIT’s unit price with AmanahRaya as catalyst, contributing towards the growth in Malaysia Foreign Direct Investment,” said Adenan.
Meanwhile, Kenedix Inc, Japan Group CEO Taisuke Miyajima said, “One of the main reasons for our decision to invest in Malaysia was the fact that we were blessed with the opportunity to partner with AmanahRaya, which is Malaysia’s premier trustee company, with a history going back almost a century..
“We believe there will be further growth for REITs in Malaysia. REITs have three key advantages as a real estate investment vehicle: ‘Simplicity’, ‘Transparency’ and ‘Liquidity’. With these advantages, we believe REITs transform real estate into a ‘global’ product.”
As a result, the collaboration with AmanahRaya inked today. Nomura acted as the Sole Financial Advisor to Amanah Raya Berhad.