AXIS-REIT TO ACQUIRE INDUSTRIAL FACILITY IN MERU FOR RM41.0 MLN

KUALA LUMPUR, Sept 23 (Bernama) -- Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd has entered into a sale and purchase agreement to acquire an industrial facility from Jemaramas Jaya Sdn Bhd for a cash consideration of RM41.0 million.

The industrial facility comprises a three-storey annexed office building and two warehouses with gross flor area totalling 17,932 square meters (193,015 square feet) on 24,952 sq m (2.50 hectares) of freehold land in the industrial area of Meru, Klang, a statement from Axis-REIT said today.

Jemaramas Jaya is in the business of manufacturing, marketing and selling systems furniture. It is wholly owned by Versalink Holdings Ltd, which is listed Singapore Exchange's Catalist board.

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Axis REIT Managers Bhd chief executive officer/ executive director Leong Kit May said the company will continue to grow their portfolio with acquisitions to deliver returns to unitholders.

“For the current financial year-to-date, Axis-REIT’s has completed acquisitions amounted to RM438.3 million.

"With the targeted completion of this property by the close of the year, we are pleased to add on another industrial facility that is strategically located within the Klang Valley to our existing portfolio of 61 assets,” she said.

The proposed acquisition is targeted to be completed by the fourth quarter of 2022 and the said facility will be leased back to Jemaramas Jaya Sdn Bhd for three years.

The acquisition will be funded by existing bank financing.

This will increase Axis-REIT’s financing ratio to 31.59 per cent of audited total assets as at Dec 31, 2021,  below the 50 per cent gearing limit prescribed by the Securities Commission Malaysia's guidelines on listed real estate investment trusts," the statement said.

-- BERNAMA