AXIS-REIT ACQUIRES INDUSTRIAL COMPLEX AT BUKIT RAJA FOR RM49.0 MILLION

PETALING JAYA, February 23, 2024 -- Axis Real Estate Investment Trust’s (“Axis-REIT”) trustee, RHB Trustees Berhad has entered into a sale and purchase agreement to acquire an industrial complex, from Amsteel Mills Sdn. Bhd. (“AMSB”) for a cash consideration of RM49.0 million. 

AMSB will lease back the industrial complex from Axis-REIT for a period of 6 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.

The industrial complex, built upon a leasehold land measuring approximately 347,491 sq. ft., has a net lettable area of 199,500 sq. ft.. It is strategically located in the well-established Bukit Raja industrial area. It is conveniently situated near the major highways such as the Federal Highway and North Klang Valley Expressway.

The purchase price was based on the market value of RM50.0 million, as appraised by independent registered valuer, Savills (Malaysia) Sdn. Bhd., in its valuation report dated 22 February 2024. The acquisition will be funded by existing bank financing, which will increase Axis-REIT’s financing ratio to 37.05% of the audited assets as at 31 December 2022. This is still below the gearing limit of 50%, as prescribed by the Guidelines on Listed Real Estate Investment Trusts issued by Securities Commission Malaysia. 

On the proposed acquisition, Axis REIT Managers Berhad chief executive officer/executive director Leong Kit May said, “We are pleased with this acquisition as it adds on to the 3 existing properties that we have already owned in Bukit Raja, a prominent industrial area that is well connected with various major highways. 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 third quarter of 2024.”

About Axis Real Estate Investment Trust
Axis Real Estate Investment Trust (“Axis-REIT”), Malaysia’s first real estate investment trust, was listed on Bursa Securities on 3 August 2005. Having been reclassified as an Islamic REIT on 11 December 2008, all acquisitions by Axis-REIT are Shariah compliant. It currently has a diverse portfolio of 63 properties strategically located in the Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah. Axis REIT Managers Berhad is the Manager of Axis-REIT while RHB Trustees Berhad is the latter’s trustee. 

Axis-REIT has a solid industrial space portfolio. As at 31 December 2023, the occupancy rate of Axis-REIT’s portfolio stood at 97% with a weighted average lease expiry period of 4.9 years, based on rental. The total space under management is 13.35 million square feet and total asset value of RM4.5 billion.

For more information, please log on to http://www.axis-reit.com.my.

Issued by Imej Jiwa Sdn. Bhd. on behalf of Axis-REIT.

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