Axis Reit to buy land, leaseback for RM42 million

Axis Reit to buy land, leaseback for RM42 million

PETALING JAYA, 2 August: Axis Real Estate Investment Trust (Reit) proposes to buy and leaseback a piece of industrial land in Sg Choh, Selangor to Scomi Engineering Bhd for RM42 million.

In a filing with the stock exchange, Axis Reit said the acquisition and leaseback are in line with its investment objectives and growth strategy to provide unitholders with stable income distribution and to achieve growth in net asset value.

It will also diversify and enlarge the portfolio of properties and is expected to benefit the fund in the long-term as a result of economies of scale.

Axis Reit said the acquisition and leaseback will be funded by its existing bank borrowings.

Meanwhile, Scomi Engineering will receive a one-off gain of RM2 million from the land sale to Axis Reit. The sale will enable Scomi Engineering to reprofile its payment obligations and to meet the working capital requirements.

— THE SUN

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