KUALA LUMPUR: Axis-REIT Managers Bhd (ARMB) expects the proposed acquisition of RM59 million logistics industrial facility in Seberang Perai will increase its fund assets under management to over RM1.33 billion.
ARMB is the manager of Axis Real Estate Investment Trust (Axis-REIT).
Trustees of the Axis REIT, OSK Trustees Bhd, has proposed to acquire the facility with a gross built-up area of 408,250 sq ft located on two parcels of adjoining industrial land in Seberang Perai Tengah with Apex Properties Sdn Bhd (APEX).
ARMB expects the proposed facility to be developed by APEX to complete by year-end and intends to utilise facilities from Axis-REIT's existing credit lines to finance the purchase.
"The proposed debt financing will increase Axis-REIT's gearing ratio to 39% upon completion of the exercise," said ARMB chief executive officer Stewart LaBrooy in a statement on Wednesday, Sept 28.
The proposed facility to be developed in stages of Phase 1, 2 and 3 will consist warehouses, office buildings, ancillary buildings like canteens, guard houses and a pumphouse.
"Both the parcels of land come with a 60-year leasehold title which will expire in 2052 and 2068 are presently tenanted by a leading global integrated logistics service provider, Schenker Logistics (Malaysia) Sdn Bhd," he said.
Axis-REIT's portfolio size will increase to 28 properties upon completion of the new acquisitions from five subject propertios worth RM296 million during its listing in 2005, he added. — Bernama
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