KUALA LUMPUR (April 23): Axis Real Estate Investment Trust (Axis REIT) will allocate RM32 million to enhance its assets including Wisma Bintang and Axis Eureka, HwangDBS Vickers Research said on Monday.

It said Axis REIT would convert Wisma Bintang, currently leased to Cycle & Carriage (C&C), into its "Axis Business Campus".

This is slated for June 12 when C&C's lease expires and is expected to complete next year, it said in a research note, adding that this would also add another 50,000 sq ft of the net lettable area (NLA) and substantial rental increases when completed.

HwangDBS Vickers said valuations would also see a jump to RM90 million from its current RM47 million which would contribute to its RM2.08 net asset value per share.

Another development is enhancement to Axis Eureka, adding 10,000 sq ft to its 127,000 sq ft NLA as well as higher rents and the refurbishment of Infinite Centre to elevate its low average rentals of RM2.09 per square feet.

HwangDBS Vickers said that it continued to like Axis REIT for its active approach on yield accretive asset acquisitions of over 7%, stable long-term tenancies, strong dividend yields and earnings upside from asset enhancements of its older buildings.

The research house has recommended a "buy" call on Axis REIT with RM2.74 target price. — Bernama

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