BUSINESS

AXIS-REIT TO ACQUIRE FREEHOLD PROPERTY IN BUKIT RAJA FOR RM120 MLN

05/03/2021 08:15 PM

KUALA LUMPUR, March 5  -- Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd, has entered into a sale and purchase agreement with FIW Steel Sdn Bhd to acquire a freehold property located within the Bukit Raja Selatan Industrial Area in Shah Alam for RM120 million.

In a statement, Leong Kit May, chief executive officer/executive director of Axis REIT Managers Bhd, the manager of Axis-REIT, said the property is strategically located in an established industrial area with close proximity to Port Klang and good highway accessibility. 

“This property is also situated directly across Axis-REIT’s Bukit Raja Distribution Centre. The current lettable area of the property only represents 36 per cent of the total land area and we are of the view that the property has a good redevelopment potential for a warehouse, after taking into consideration, amongst others, the location of the property and the increasing demand for warehousing within the Klang Valley," he said.

The property spans 8.4 hectares of land with a single-storey detached warehouse building, two single-storey detached factory buildings, a single-storey detached store together with a three-storey office building and ancillary buildings - with total lettable area at 326,231 square feet.

The property acquisition is expected to be completed by the first half of 2021. 

Upon completion, FIW will be the property’s sole tenant with a tenancy of one year with an option to renew for another four terms of three months each, whereby the monthly rental for the first year will be RM416,666.67 and RM608,333.34 for the renewed terms.

 “The acquisition will be funded by bank financing, which will increase Axis-REIT’s gearing ratio to 35.4 per cent of its audited total assets as at Dec 31, 2020. Upon completion, the acquisition will contribute positively to Axis-REIT’s earnings,” Axis-REIT Managers said. 

Bukit Raja Selatan Industrial Area is one of the established industrial areas in Shah Alam, where some notable landmarks are located within this area, including Central I-City, Hospital Shah Alam and Universiti Teknologi Mara.

-- BERNAMA

 

 


BERNAMA provides up-to-date authentic and comprehensive news and information which are disseminated via BERNAMA Wires; www.bernama.com; BERNAMA TV on Astro 502, unifi TV 631 and MYTV 121 IFLIX channels and BERNAMA Radio on FM93.9 (Klang Valley), FM107.5 (Johor Bahru), FM107.9 (Kota Kinabalu) and FM100.9 (Kuching) frequencies.

Follow us on social media :
Facebook : @bernamaofficial, @bernamatv, @bernamaradio
Twitter : @bernama.com, @BernamaTV, @bernamaradio
Instagram : @bernamaofficial, @bernamatvofficial, @bernamaradioofficial
TikTok : @bernamaofficial

© 2024 BERNAMA   • Disclaimer   • Privacy Policy   • Security Policy