Axis REIT buys warehouse factory for RM18.5m

PETALING JAYA: Axis Real Estate Investment Trust (Axis REIT) is acquiring an office and warehouse factory in Senawang Industrial Park, Seremban for RM18.5 million cash from Gandour (Malaysia) Sdn Bhd.

Axis REIT said the proposed acquisition is in line with its investment objectives and 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 property with strong recurring rental income.

In a filing with Bursa Malaysia yesterday, it said that the proposed acquisition will be accretive to its distributable income, 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 proposed acquisition includes a three-storey office annexed with a oneand-a-half-storey warehouse factory and ancillary buildings erected on 4.2 acres of freehold land. The 19-year-old property has a net lettable area of 3.4 acres and a net book value of RM16.77 million.

It is leased to Nippon Wiper Blade (M) Sdn Bhd for a fixed period of 10 years, from July 1, 2016 till June 30, 2026. The rental rate is RM130,000 per month for the first five years and RM149,500 per month for the subsequent five years.

The market value of the property is RM21 million as appraised by First Pacific Valuers Property Consultants Sdn Bhd in its valuation report dated June 8, 2018.

Axis REIT Managers Bhd, the REIT manager, will use existing credit lines to fund the purchase.