Axis REIT to acquire two properties in Klang for RM351.8 million

KUALA LUMPUR: Axis Real Estate Investment Trust (Axis REIT) is acquiring two properties located within Kawasan Perindustrian Bukit Raja, Klang, Selangor from Amsteel Mills Sdn Bhd (AMSB) for RM351.8 million.

Following the proposed acquisition, RHB Trustees Bhd, the trustee for Axis REIT, has entered into two sale and purchase agreements with AMSB for the acquisition of an industrial complex (property 1) and an open storage yard (property 2).

In a filing with Bursa Malaysia, Axis REIT said the proposed acquisition would be funded by its existing bank financing.

“The proposed acquisition of the properties is in line with the fund’s investment objectives and its growth strategy to provide the unitholders with stable income distribution and to achieve growth in the net asset value per unit of Axis REIT by acquiring high-quality, earnings-accretive properties with strong recurring rental income.

“The properties are located within the prime industrial area of Kawasan Perindustrian Bukit Raja facilitated by a comprehensive transportation network with accessibility to major highways like Federal Highway, Shapadu Highway, North Klang Valley Expressway and the West

Coast Expressway,” it added.

Axis Reit said that with the completion of the proposed acquisition of the properties, it will have a significant presence within Bukit Raja, with properties sitting on a total land area of 48.20 hectares.

“The proposed acquisition of property 1 is expected to contribute positively to the earnings of the fund for the financial year ending Dec 31, 2024.

“Acquisition of property 2 is not expected to have material impact on the earnings of the fund for the financial year ending Dec 31, 2024, but is only expected to contribute rental income towards the end of 2025,” it added. — Bernama