AME REIT Grants Final Extension For Sale Of Industrial Properties To Digital Hyperspace
AME Real Estate Investment Trust (AME REIT) has announced a final extension for the completion of its proposed sale of industrial properties to Digital Hyperspace Sdn Bhd, with an explicit removal of any further remedial grace periods should the buyer fail to fulfill the terms of the agreement.
In a statement issued on Bursa, AME REIT said its vendors had on 9 May 2025 entered into two separate supplemental letters with Digital Hyperspace to extend the deadline for the payment of the remaining balance of the total sale consideration from 9 May to 22 May 2025.
Notably, the supplemental agreements stipulate that no additional remedial period will be provided in the event Digital Hyperspace fails to make the required payments—including Balance Sale Consideration 1, Balance Sale Consideration 2, and any applicable interest or related sums. This marks a more stringent stance by AME REIT to ensure the deal is finalized without further delays.
Under the revised terms, Digital Hyperspace is now obliged to pay extension interest at 12% per annum, calculated from 10 May to 22 May 2025, on the outstanding sale considerations.
Background of the Deal
The proposed transaction, first announced on 13 May 2024, involves the disposal of several industrial properties by AME REIT to Digital Hyperspace, a data center infrastructure developer. The initial agreement was part of AME REIT’s strategy to unlock asset value and streamline its industrial property portfolio amid strong regional demand for digital infrastructure and hyperscale data center projects.
Subsequent announcements on 22 October 2024, 19 February 2025, and 21 March 2025 indicated multiple extensions granted to Digital Hyperspace due to internal financing arrangements and regulatory processes. The latest extension is expected to be the final one, emphasizing the need for completion by the new deadline.
Outlook
The transaction, once concluded, is expected to provide AME REIT with substantial capital to reinvest into high-yielding assets and support its long-term growth strategy. However, any failure by Digital Hyperspace to meet the revised terms could derail the proposed sale, potentially impacting both parties’ strategic plans in the increasingly competitive data infrastructure market.
AME REIT stated it would continue to update Bursa Malaysia on further developments as they occur or upon receiving any new directions from the relevant authorities.
