AmFIRST Real Estate Investment Trust (AmFIRST-REIT) has secured shareholder approval for the proposed RM331 million sale of Menara AmBank, a move that positions the fund to broaden its investment portfolio into new sectors such as healthcare, industrial, logistics, and education.

The decision was confirmed during AmFIRST-REIT's annual general meeting and extraordinary general meeting held recently in Petaling Jaya. AmREIT Managers Sdn Bhd chief executive officer Chong Hong Chuon highlighted that the transaction would significantly lower the REIT’s gearing ratio to approximately 33%, down from its current level of around 46% to 47%. This deleveraging effort is aimed at strengthening the REIT’s financial position to support its diversification strategy.

Chong described the sale as the completion of the initial phase of portfolio rationalization. He indicated that the fund is now focused on expanding into sectors beyond traditional commercial real estate to enhance resilience and growth prospects.

“The first part of rationalisation, I think we are done with the disposal. So then we now go for diversification,” Chong stated during a press briefing following the meetings.

The CEO also noted that the REIT had been actively seeking investment opportunities prior to the disposal, assessing various property subsectors to identify viable acquisitions aligned with its strategic goals. The diversification plan is expected to reduce dependency on office assets and tap into segments with potentially higher growth and stability.

The move comes amid a broader trend among Malaysian REITs to explore non-traditional real estate sectors in response to changing market dynamics and tenant demands. With the deleveraging achieved through the Menara AmBank sale, AmFIRST-REIT is positioned to pursue new assets that can enhance income stability and long-term value for its unitholders.