Axis REIT selling Kayangan Depot

KUALA LUMPUR (May 15): Axis REIT Managers Bhd, the manager of Axis Real Estate Investment Trust, is calling a public tender for Kayangan Depot, a 3-storey office, warehouse and showroom with 173,582 sq ft total gross built-up area in Seksyen 15, Shah Alam.

"The property has reached its optimal value and it is timely to realise the capital gain for the benefit of unitholders," it said in a statement on Monday. The manager can still decide not to proceed with the proposed sale should bids be unsatisfactory. The tender will be advertised in several English and Chinese papers from May 15. No reserve price was given in the statement.

According to its 2011 annual report, Kayangan Depot generated RM1.09 million net rental income in FY11 and had a RM20.23 million net book value, just below its market value of RM22 million or RM136 per sq ft. The latter translates to about 1.72% of its total portfolio. Kayangan Depot was acquired for RM16.22 million on June 30, 2006.