By FARA AISYAH / Pic By TMR File
AXIS Real Estate Investment Trust (Axis REIT) has entered into a sale and purchase agreement with Rancak Beta Sdn Bhd to acquire a singlestorey warehouse cum office building together with ancillary buildings in Pelabuhan Tanjung Pelepas (PTP), Johor for RM65 million in cash.
In an exchange filing yesterday, the trust noted that the proposed acquisition will be funded by existing bank financing.
Axis REIT also noted that the deal is in line with its investment objectives and growth strategy of providing its unitholders with stable income distribution and to achieve growth in the net asset value per unit of Axis REIT by acquiring high quality and earning accretive properties with strong recurring rental income.
“The proposed acquisition of the property will be accretive to Axis REIT’s distributable income.
It added that the property would enable Axis REIT to strengthen its portfolio in industrial properties and is expected to benefit the fund in the long term as a result of economies of scale.
The proposed acquisition is expected to be completed by the first half of 2020.
Last week, Axis REIT has proposed to acquire a parcel of leasehold industrial land — together with a single-storey factory/warehouse with a double-storey office annexed — in Nilai, Negri Sembilan from K-Plastics Industries Sdn Bhd for RM50 million.
The proposed land acquisition will be funded by existing debt facilities and is expected to be completed by end-2019.
Upon completion, the property with a net lettable area of 2.29ha shall be leased back to K-Plastics for a fixed period of 10 years with an option to renew for another five years.
Axis REIT closed five sen or 2.72% lower to RM1.79 yesterday, giving it a RM2.22 billion market capitalisation.