KUALA LUMPUR (Oct 9): Axis Real Estate Investment Trust is buying a property in the industrial area of Nilai from K-Plastics Industries Sdn Bhd for RM50 million.

The acquisition will be accretive to Axis-REIT’s distributable income, and enable the fund to strengthen its portfolio of industrial properties, the group said in a filing yesterday.

The leasehold land with a gross floor area of 246,500 sq ft comprises a single-storey factory with a double-storey office annexed, and also houses a single-storey refuse collection centre, a guard house and a TNB sub-station.

It is currently being used for the manufacturing and sale of plastics and packaging products, Axis REIT said.

“The proposed acquisition of the property is expected to contribute positively to the earnings of the fund for the financial year ending Dec 31, 2019 (FY19), upon its completion date which is targeted to be by end of year 2019,” it said.

Axis REIT closed one sen or 0.54% lower at RM1.83 yesterday, for a market capitalisation of RM2.26 billion.

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