KUALA LUMPUR: Axis Real Estate Investment Trust
's (REIT) trustee RHB Trustees Bhd has inked a conditional share and purchase agreement (SPA) with Banyan Estate Malaysia Sdn Bhd (BEMSB) for the forward acquisition of a double-storey factory annexed with a double-storey office building and other ancillary buildings, which will be built on a two-acre tract of land in Senai in Kulai, Johor, for RM34.6mil.
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 to the specifications of an agreement to Build and Lease (ATBL) entered into between RHB, BEMSB, and FCI Connectors Malaysia Sdn Bhd (FCI).
The construction of the buildings is targeted for completion within 24 months from the date of the SPA and ATBL.
Upon completion, 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.
Axis REIT Managers Bhd CEO and executive director, Leong Kit May said: “Senai has established itself as a key logistics and industrial hub, supported by strong connectivity via Senai International Airport, the Senai Airport interchange along the Second Link Highway, and the Senai interchange of the Senai–Desaru Expressway.
"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.”
