Axis-REIT to acquire industrial property in Klang for RM37 mln

KUALA LUMPUR, Dec 24  -- Axis Real Estate Investment Trust ( Axis-REIT) has proposed to acquire a property within an industrial area in Bukit Raja, Klang from Lion Steelworks Sdn Bhd (LSSB) for RM37.0 million.

In a filing with Bursa Malaysia today, Axis-REIT, through its manager Axis REIT Managers Bhd, said its trustee RHB Trustees Bhd had entered into a sale and purchase agreement with LSSB in relation to the proposed acquisition.

Axis REIT Managers said the exercise was in line with the company's investment objectives and its growth strategy to provide the unit holders with stable income distribution.

"It is also aimed to achieve growth in the net asset value per unit of Axis-REIT, by acquiring high quality, earnings accretive properties with strong recurring rental income," it said.

Furthermore, the property is strategically located within an established industrial area in Klang Valley that is well facilitated by an existing comprehensive transportation network that includes the Federal Highway and North Klang Valley Expressway, it said.

"The proposed acquisition will be accretive to Axis-REIT’s distributable income and further strengthens Axis-REIT’s portfolio of industrial properties that are well located and served by matured amenities," it said, anticipating the company to benefit in the long term.

-- BENAMA