KUALA LUMPUR, May 23 — Axis REIT Managers Bhd has entered into a sale and purchase agreement with Orientant Int. Sdn Bhd to acquire a warehouse facility in Pasir Gudang, Johor, worth RM33 million.
The acquisition would increase the total assets under management of Axis Real Estate Investment Trust (Axis REIT) to RM2.19 billion, Axis REIT Managers said in a statement Monday.
Axis REIT Managers is the manager of Axis REIT.
“The property is tenanted to Kerry Ingredients Sdn Bhd for a term of five years lease which commenced from Jan 15, 2014 to Jan 14, 2019, with a renewal option already exercised for an additional two years from Jan 15, 2019 to Jan 14, 2021.
“The remaining lease period will be about four and a half years upon completion of the acquisition,” it said.
Axis REIT Managers Chief Executive Officer and Finance Director Leong Kit May said the proposed acquisition was in line with the investment objectives and strategy of Axis REIT and would be accretive to the trust’s distributable income.
The acquisition is targeted to be completed by the end of the fourth quarter of this year, which will increase the number of properties to 39 from 38 properties currently.