Axis-REIT To Acquire Industrial Property In Johor For RM34.6 Mln

KUALA LUMPUR, Dec 31 (Bernama) -- Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd has entered into a sale and purchase agreement (SPA) to purchase a double-storey detached factory with a double-storey office building in Johor for a cash consideration of RM34.6 million.

In a statement today, Axis-REIT said the buildings and the land in Senai will be acquired from Banyan Estate Malaysia Sdn Bhd (BEMSB).

“The buildings, which will have an approximate gross built-up area of 115,363 square feet upon completion, will be developed by BEMSB in accordance with the specifications of an agreement to build and lease (ATBL) entered into between RHB, BEMSB, and FCI Connectors Malaysia Sdn Bhd (FCI),” it said.

The construction of the buildings is targeted for completion within 24 months from the date of the SPA and ATBL.

Upon completion, it said Axis-REIT will lease the buildings to FCI for a period of five years at an initial monthly rental of RM207,653.40, subject to step-ups during the lease period.

Commenting on the proposed acquisition, Axis REIT Managers Bhd chief executive officer and executive director, Leong Kit May said as part of the Johor–Singapore Special Economic Zone,  Senai offers businesses a cost-efficient operating environment that complements Singapore’s high-value economic activities.

“We believe this acquisition supports our investment strategy by adding a high-quality, income-generating asset with strong and recurring rental returns and will enhance Axis-REIT’s long-term performance,” he said. 

In a separate filing with Bursa Malaysia today, the company added that the proposed acquisition of the property is expected to contribute positively to the earnings of the fund for the financial year ending Dec 31, 2027 upon the completion date,  which is targeted to be by the fourth quarter of 2027.

-- BERNAMA