Axis REIT buys Shah Alam warehouse for RM95m

KUALA LUMPUR (Aug 27): Axis Real Estate Investment Trust’s (Axis REIT) trustee, RHB Trustee Bhd, is acquiring a property located in Seksyen 15, Shah Alam, from Axis Development Sdn Bhd for RM95 million.

The property, with a net lettable area of 285,249 sq ft, comprises a leasehold industrial piece of land with a single-storey warehouse and a double-storey office annex, another single-storey warehouse and other ancillary buildings.

The property is currently leased to One Total Logistics (M) Sdn Bhd for RM513,448 per month, with the lease expiring in June 2023.

“The acquisition is anticipated to contribute positively to Axis-REIT’s earnings upon the completion of the acquisition exercise by end of the year,” it said.

Leong Kit May, Axis REIT Managers Bhd chief executive officer cum executive director, highlighted the location of the property, which, as previously, was key in Axis REIT’s decision for the acquisition.

“In this case, we will have a sizable logistics warehouse located within Seksyen 15’s prime industrial area, which is accessible via two major highways, notably the Federal Highway and the Kesas Highway,” Leong said.

The industrial land itself measures 10.4 acres and carries an unexpired term of around 54 years, Axis REIT said. The property was appraised by PA International Property Consultants (KL) Sdn Bhd earlier this month.

The acquisition, to be funded via borrowings, will raise Axis REIT’s gearing ratio to 30.84% of its audited total asset as at Dec 31, 2019.

Axis REIT units last traded up 1 sen or 0.48% to RM2.11, valuing the trust at RM3.04 billion. Year-to-date, the counter has risen 19.21%.

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