Axis-REIT to purchase logistics warehouse for RM390mil, its largest acquisition



KUALA LUMPUR: Axis Actual Property Funding Belief’s (Axis-REIT) trustee, RHB Trustees Bhd has entered right into a sale and buy settlement to accumulate a 1.54 million sq ft logistics warehouse facility in Pelabuhan Tanjung Pelepas (PTP), Johor from Equalbase PTP Sdn Bhd (EPSB) for RM390mil.

In a press release, Axis-REIT mentioned upon the completion of the proposed acquisition, which is predicted to be by mid-2022, the property will likely be leased again to EPSB for a set time period of 10 years.

The beginning month-to-month rental will likely be RM2.17mil for the primary three years with subsequent upward changes at first of 12 months 4 till 12 months 10.

The property, which was solely constructed roughly three years in the past, is located on an 18.4-acre subleased land. It contains a double-storey ramp-up warehouse cum 3-storey workplace, sheltered automotive park and workplace along with ancillary buildings.

In response to Axis-REIT, the is properly fitted to warehousing functions because it comes with 83 loading bays outfitted with hydraulic dock levellers and early suppression quick response (ESFR) sprinklers system.

Based mostly on the valuation report by First Pacific Valuers Property Consultants Sdn Bhd dated March 31, the market worth of the property is RM390mil.

The acquisition proposed will likely be funded by financial institution financing, rising Axis-REIT’s gearing ratio to 37.2% of its audited complete belongings as at Dec 31, 2021.

Axis REIT Managers Bhd chief government officer/government director Leong Package Might mentioned the proposed acquisition could be the biggest to this point because the institution of the fund.

She mentioned it additionally highlighted Axis-REIT’s intent to develop with the acquisition of high-quality properties which can be earnings accretive and with sturdy worth propositions.

“The property, a contemporary ramp-up logistics facility and properly outfitted for logistics functions, is situated inside the neighborhood of PTP, Malaysia’s premier trans-shipment port.

“Moreover, the property is a licensed inexperienced constructing by GBI and the proposed acquisition signifies Axis-REIT’s dedication in direction of ESG and to generate sustainable revenue for the fund,” Leong mentioned.

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