Axis REIT wants to buy industrial facility for RM18.5mil

PETALING JAYA: Axis Real Estate Investment Trust (Axis REIT) is proposing to acquire an industrial facility in Negri Sembilan for RM18.5mil.

In a Bursa Malaysia filing yesterday, Axis REIT said the proposed acquisition of the building, with an estimated annual yield of 7.7% before financing costs, was in line with the fund’s investment growth strategy.

The acquisition also allows unit holders to achieve growth in the net asset value per unit with strong recurring rental income.

“Furthermore, the proposed acquisition of the property would enable Axis REIT to strengthen its portfolio of industrial properties and is expected to benefit the fund in the long term as a result of economies of scale.”

The filing said the property comprises a three-storey office annexed with a 1.5-storey warehouse factory and other ancillary buildings located on 183,342 sq ft of freehold land within the Senawang Industrial Park.

The building is currently tenanted to Nippon Wiper Blade (M) Sdn Bhd for a fixed 10-year lease, which commenced on July 1, 2016. “The proposed acquisition will be funded by existing bank financing of Axis REIT,” it said, adding that the market value of the property was RM21mil as appraised by First Pacific Valuers Property Consultants Sdn Bhd.

Axis REIT’s net profit for its second quarter ended June 30 rose 15% to RM26.83mil from RM23.27mil in the previous corresponding period, due to better realised net income from operations amounting to RM24.42mil.

Revenue during the quarter increased to RM47.45mil from RM41.64mil a year earlier.