Axis-REIT acquires industrial property in Penang for RM800mil

From left: Axis REIT Managers Bhd non-independent non-executive deputy chairman Stephen Tew Peng Hwee, Axis REIT Managers Bhd CEO and executive director Leong Kit May, Ann Joo Steel Bhd group managing director Datuk Lim Hong Thye and Ann Joo Steel deputy managing director Datuk Lim Aun Chuan.

PETALING JAYA: Axis Real Estate Investment Trust (Axis-REIT) has proposed to acquire an industrial property in Seberang Perai, Penang, from Ann Joo Resources Bhd for RM800mil - making it Axis-REIT’s largest acquisition to date.

Following the completion of the acquisition, Ann Joo Resources’ wholly-owned subsidiary, Ann Joo Steel Bhd, will lease the said property from Axis-REIT for a period of eight years at an initial monthly rental of RM4.16mil.

“The rental will be adjusted in accordance with the surrendering of space at the end of year 5, year 6 and Year 7, respectively, in the manner to be determined in the sale and purchase agreement,” said Axis-REIT in a statement.

The industrial property is situated on a freehold land under a master land, which is to be subdivided into a subdivided land measuring approximately 135.53 acres.

“It enjoys a strategic location within the Prai Industrial Estate in Penang, offering convenient access to Penang Island, as well as major highways via the North–South Expressway.

“The property is also located in proximity to the Penang Port,” said Axis-REIT.