Axis REIT to buy Johor land

PETALING JAYA: Axis Real Estate Investment Trust (Axis REIT) is buying a 10.91ha industrial land in Nusajaya, Johor for RM153.5 million.
In a filing with Bursa Malaysia, its manager, Axis REIT Managers Bhd, said it had signed a sale and purchase agreement with Yongnam Engineering Sdn Bhd for the property including the 10.91ha at the SiLC industrial zone.
Axis REIT would then lease back the property to Yongnam over a fixed term of 15 years with an option for another 15 years.
The industrial zone was connected to major road network from other strategic economic areas to Iskandar Malaysia.
Axis REIT Managers said the corporate exercise was to provide unit holders with stable distribution and to achieve growth in net asset value (NAV) per unit of the fund by buying properties that meet its investment criteria.