Axis REIT Managers Bhd chief executive officer/executive director Leong Kit May
PETALING JAYA: Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd has entered into a sale and purchase agreement to acquire a hypermarket for RM25.75mil from Amal Mewah Development Sdn Bhd.
Located in Temerloh, Pahang, the hypermarket, with a gross floor area of 115,967 sq ft, is merely 1.8 kilometres to the south-west of Temerloh town centre and 10.4 kilometres to the south-east of Mentakab.
Axis-REIT said the acquisition comes with a 20-year fixed lease signed with TF Value-Mart Sdn Bhd which is currently Axis-REIT’s existing tenant at Axis Hypermarket in Sungai Petani.
The purchase price was based on a market value of RM27mil, as appraised by PA International Property Consultants (KL) Sdn Bhd, in its valuation report dated Nov 28, 2023.
Axis-REIT said the acquisition will be funded by existing bank financing, which will increase its financing ratio to 36.71% of the audited total assets as at Dec 31, 2022.
This is still below the gearing limit of 50%, as prescribed by the Guidelines on Listed Real Estate Investment Trusts issued by the Securities Commission.
We are confident that this acquisition will contribute positively to Axis-REIT’s earnings from 2024 and beyond once the acquisition is completed which is targeted to be by the first quarter of 2024.
“While we remain steadfast to acquire Grade A logistics facilities and manufacturing facilities, we have the flexibility to diversify into alternative asset types that come with long leases and strong tenant covenants,” Axis REIT Managers Bhd chief executive officer/executive director Leong Kit May said.
