Axis-REIT to buy three Shah Alam properties for RM280m

PETALING JAYA: Axis Real Estate Investment Trust (Axis-REIT)'s trustee RHB Trustees Bhd has proposed to acquire three properties in Shah Alam for RM280.5 million cash.
In a filing with Bursa Malaysia yesterday, Axis-REIT said RHB Trustees yesterday entered into conditional agreements for the proposed acquisitions of Axis Shah Alam DC3, Axis MRO Hub and Axis Shah Alam DC2.
"The proposed acquisitions are in line with the manager (Axis REIT Managers Bhd)'s investment objectives and the growth strategy of Axis-REIT to provide the unitholders with stable income distribution and to achieve growth in the net asset value per unit, by acquiring high quality, earnings accretive properties with strong recurring rental income. The proposed acquisitions will be accretive to Axis-REIT's distributable income," it said.
Furthermore, the proposed acquisitions would enable Axis-REIT to diversify and enlarge its portfolio of properties and are expected to benefit the fund in the long-term as a result of economies of scale.
"The board believes that the high demand for industrial properties in these locations would suggest that Axis Shah Alam DC3, Axis MRO Hub and Axis Shah Alam DC2 should continue to attract demand. Hence, the board believes that the proposed acquisitions will contribute positively to the future performance of the fund."
Moving forward, the proposed acquisitions are expected to contribute positively to the earnings of the fund.