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KUALA LUMPUR: Axis Real Estate Investment Trust (Axis REIT) has proposed to acquire a 4-storey office building from FBSM Holdings Bhd for RM51.25 million cash, it announced on Bursa Malaysia on Thursday, Dec 30.
The fund had entered into a sale and purchase agreement (SPA) with FBSM to acquire the building in Cyberjaya, which comes with a lower roof floor and a lower ground floor and is built on a freehold parcel measuring 89,760 sq ft.
The building contains a gross floor area of 218,662 sq ft, a net lettable area of 116,388 sq ft, and has an average occupancy rate of 71.6% as at Nov 30.
"Upon completion of proposed acquisition, the property will be fully occupied," said the fund's manager Axis REIT Managers Bhd (ARMB).
"The tenancy mix in the property is a diverse mix of established tenants of which major tenants include SCICOM (MSC) Bhd, Wolter Kluwer Enterprise Service Partners Sdn Bhd, Multimedia Development Corporation Sdn Bhd, Telebiz BPO Sdn Bhd, Media Monitor Sdn Bhd and FSBM," it added.
Average monthly gross rental psf in the building is RM3.90 as at Nov 30, it said.
"The proposed acquisition is consistent with the investment objective and the strategy of Axis REIT and it will be accretive to Axis REIT's distributable income... (it) will at the same time diversify and enlarge Axis REIT's portfolio of properties and is expected to benefit the Fund over the medium to long term," ARMB explained.
The fund typically invests in office and light industrial properties, and currently has 23 properties in its portfolio.
ARMB said the purchase price of the building was fully supported by an independent valuation by C H Williams Talhar & Wong Sdn Bhd.
The acquisition is expected to positively contribute to the fund's earnings for the financial year ending Dec 31, 2011.
The fund had entered into a sale and purchase agreement (SPA) with FBSM to acquire the building in Cyberjaya, which comes with a lower roof floor and a lower ground floor and is built on a freehold parcel measuring 89,760 sq ft.
The building contains a gross floor area of 218,662 sq ft, a net lettable area of 116,388 sq ft, and has an average occupancy rate of 71.6% as at Nov 30.
"Upon completion of proposed acquisition, the property will be fully occupied," said the fund's manager Axis REIT Managers Bhd (ARMB).
"The tenancy mix in the property is a diverse mix of established tenants of which major tenants include SCICOM (MSC) Bhd, Wolter Kluwer Enterprise Service Partners Sdn Bhd, Multimedia Development Corporation Sdn Bhd, Telebiz BPO Sdn Bhd, Media Monitor Sdn Bhd and FSBM," it added.
Average monthly gross rental psf in the building is RM3.90 as at Nov 30, it said.
"The proposed acquisition is consistent with the investment objective and the strategy of Axis REIT and it will be accretive to Axis REIT's distributable income... (it) will at the same time diversify and enlarge Axis REIT's portfolio of properties and is expected to benefit the Fund over the medium to long term," ARMB explained.
The fund typically invests in office and light industrial properties, and currently has 23 properties in its portfolio.
ARMB said the purchase price of the building was fully supported by an independent valuation by C H Williams Talhar & Wong Sdn Bhd.
The acquisition is expected to positively contribute to the fund's earnings for the financial year ending Dec 31, 2011.
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