Axis-reit To Acquire Industrial Complex In Klang For Rm49 Mln

KUALA LUMPUR, Feb 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 complex in Klang from Amsteel Mills Sdn Bhd (AMSB) for RM49 million cash.

Axis REIT Managers Bhd (ARMB), the management company of Axis-REIT, said AMSB would lease back the industrial complex from Axis-REIT for a period of six years at the starting rental of RM285,833.33 per month. 

The industrial complex is currently wholly and fully occupied by AMSB, involved in the manufacturing and marketing of steel bars and wire rods, it said in a filing with Bursa Malaysia today.

In a separate statement, ARMB chief executive officer/executive director Leong Kit May said the acquisition would be added to the three existing properties that the company already owned in Bukit Raja, Klang.

“This property is also adjoining Axis-REIT’s existing property, Axis Facility 2 @ Bukit Raja.

“We are confident this acquisition will contribute positively to Axis-REIT’s earnings once the acquisition is completed, which is targeted to be by the third quarter of 2024,” she said.

ARMB said the purchase price was based on the market value of RM50 million as appraised by independent registered valuer Savills (Malaysia) Sdn Bhd.

The acquisition will be funded by existing bank financing, which will increase Axis-REIT’s financing ratio to 37.05 per cent of the audited assets as at Dec 31, 2022.

This is still below the gearing limit of 50 per cent as prescribed by the Guidelines on Listed Real Estate Investment Trusts issued by the Securities Commission Malaysia, it added.

-- BERNAMA