Axis-REIT raises RM334.7m via private placement

by TMR / graphic by MZUKRI MOHAMAD

AXIS Real Estate Investment Trust has raised RM334.7 mil via a private placement exercise which will be used to repay its bank financings for the financial year to-date.

It will also be used to lower the current financing ratio from 38% (post completion of Xin Hwa Warehouse @ Pasir Gudang acquisition in Oct 2021) to 28%, the group said in a statement today.

Axis-REIT has placed out a total of 188.04 million new units, representing 13% of the existing fund size of 1,446.48 million units. The private placement has been fixed at an issue price of RM1.78 per unit representing a discount of approximately 4.60% to the five days volume weighted average price up to 1 December 2021.

In conjunction with the placement exercise, Axis-REIT had on 1 December 2021 declared a fourth interim income distribution of 2.03 sen per unit for the period from 1 October 2021 to 15 December 2021. The fourth interim income distribution is payable on 14 January 2022.

“The private placement is in line with our prudent capital management strategy, by providing us sufficient headroom for future acquisitions and enabling us to carry out more development projects. We will continue to acquire high quality accretive properties with strong recurring rental income, in order to create stable and sustainable return for our unitholders,” said CEO of Axis REIT Managers Bhd Leong Kit May.

The placement was handled by Maybank Investment Bank and CIMB Investment Bank, being the joint placement agents.