Axis-REIT to buy logistics warehouse for RM390mil, its largest acquisition


KUALA LUMPUR: Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd has entered into a sale and purchase agreement to acquire a 1.54 million sq ft logistics warehouse facility in Pelabuhan Tanjung Pelepas (PTP), Johor from Equalbase PTP Sdn Bhd (EPSB) for RM390mil.

In a statement, Axis-REIT said upon the completion of the proposed acquisition, which is expected to be by mid-2022, the property will be leased back to EPSB for a fixed term of 10 years.

The starting monthly rental will be RM2.17mil for the first three years with subsequent upward adjustments at the start of year four until year 10.

The property, which was only built approximately three years ago, is situated on an 18.4-acre subleased land. It comprises a double-storey ramp-up warehouse cum 3-storey office, sheltered car park and office together with ancillary buildings.

According to Axis-REIT, the property is well suited for warehousing purposes as it comes with 83 loading bays equipped with hydraulic dock levellers and early suppression fast response (ESFR) sprinklers system.

Based on the valuation report by First Pacific Valuers Property Consultants Sdn Bhd dated March 31, the market value of the property is RM390mil.

The proposed acquisition will be funded by bank financing, increasing Axis-REIT’s gearing ratio to 37.2% of its audited total assets as at Dec 31, 2021.

Axis REIT Managers Bhd chief executive officer/executive director Leong Kit May said the proposed acquisition would be the largest to date since the establishment of the fund.

She said it also highlighted Axis-REIT’s intent to grow with the acquisition of high-quality properties that are earnings accretive and with strong value propositions.

“The property, a modern ramp-up logistics facility and well equipped for logistics purposes, is located within the vicinity of PTP, Malaysia’s premier trans-shipment port.

“Furthermore, the property is a certified green building by GBI and the proposed acquisition signifies Axis-REIT’s commitment towards ESG and to generate sustainable income for the fund,” Leong said.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

Tropicana swings into the red in 1Q
ASNB to temporarily suspend transactions, services from June 4 to 7
IOI Properties posts net profit of RM59.7mil in 3Q
Pos Malaysia posts lower net loss for 1Q at RM30.37mil
Genting Plantations 1Q net profit surges 83%
Supermax 3Q profit takes a hit due to WRO, lower selling prices
Axiata slips into the red
Ringgit ends slightly better against greenback
TM 1Q net profit rises 4.4% to RM339.8mil
UEM Sunrise swings back into profit in 1Q

Others Also Read