Axis REIT to acquire industrial facility in Johor for RM16.3m

KUALA LUMPUR (Feb 23): Axis Real Estate Investment Trust (Axis REIT) has proposed to acquire an industrial facility in Kulai, Johor for RM16.3 million cash.

In a Bursa Malaysia filing on Tuesday (Feb 22), the group said the proposed acquisition is in line with the fund’s investment objectives and growth strategy to provide the unitholders with stable income distribution and to achieve growth in the net asset value (NAV) per unit of Axis REIT, by acquiring high-quality, earnings accretive properties with strong recurring rental income.

“Furthermore, the proposed acquisition of the property would enable Axis REIT to strengthen its portfolio of industrial properties and is expected to benefit the fund in the long-term.

“i-Park @ Indahpura is a 230-acre gated-and-guarded industrial park that forms part of the larger township of Indahpura. The location is well-connected via the Second Link Expressway and NorthSouth Expressway.

“Axis REIT currently owns nine properties in this industrial park,” it said.

The group added that the proposed acquisition of the property will be funded by existing bank financing of Axis REIT, and that the acquisition will be completed by the first half of the year.

Shares in Axis REIT ended five sen or 2.66% lower to RM1.83 on Tuesday, valuing the group at RM2.65 billion.

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