KUALA LUMPUR: AmanahRaya Real Estate Investment Trust (REIT) has signed a long-term tenancy agreement with ALFA International College Sdn Bhd for its property in Subang Jaya, Selangor.
In a statement, it said the signing coincides with the expiry of the tenancy agreement with Segi College on Feb 28, 2024.
The tenancy agreement with ALFA for the property with a land area of 51,957 sq ft and a net lettable area of 131,387 sq ft 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.
“We are thrilled to welcome ALFA as our new long-term tenant. Their reputation for delivering quality education aligns perfectly with our vision for this property.
“We look forward to a fruitful partnership with ALFA and are confident that their presence will contribute significantly to the success of this property,” said managing director Tunku Rozita.
She added that the partnership with ALFA represents a significant step towards enhancing AmanahRaya REIT’s net property income.
The property is expected to generate a consistent income stream with positive rent reversion every 3 years, which will benefit the Unitholders.
“We wish to continue to retain the asset being an educational base and at the same time exercising asset re-allocation strategy to improve our distribution per unit (DPU) and share price, respectively,” she said.