BUSINESS

AXIS-REIT'S TRUSTEE TO ACQUIRE A LOGISTIC WAREHOUSE FACILITY FROM VTSB FOR RM32 MLN

25/10/2021 07:31 PM

KUALA LUMPUR, Oct 25 -- Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd, has entered into a sale and purchase agreement in relation to the proposed acquisition of a logistic warehouse facility from Venice Tulip Sdn Bhd (VTSB) for a total lump sum cash consideration of RM32 million.

In a filing with Bursa Malaysia today, it said the property is presently built upon a leasehold land located within Kawasan Perindustrian Pasir Gudang, Johor.

It said the property is to be acquired free from encumbrances but subject to the terms and conditions stipulated in the sale and purchase agreement between RHB Trustees and VTSB on Oct 25, 2021.

“RHB (Trustee), as the Trustee for Axis-REIT, has approved the proposed acquisition of the property vide their letter dated Aug 6, 2021 in accordance with the provisions of the Fourth Principal Deed dated Jan 17, 2020 entered into between RHB (Trustee) and ARMB constituting Axis-REIT,” it said.

On the rationale, it said the proposed acquisition of the property is in line with the fund’s investment objectives and its growth strategy to provide the unitholders with stable income distribution and 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.

“The proposed acquisition of the property will be accretive to Axis-REIT’s distributable income.

“Furthermore, the proposed acquisition of the property would enable Axis-REIT to strengthen its portfolio of industrial properties and is expected to benefit the fund in the long-term,” it added. 

The proposed acquisition of the property is expected to be completed by the first half of 2022.

-- BERNAMA


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