According to Axis REIT Manager Bhd CEO Kit May Leong, the company has steadily increased its investment in Asset Enhancement Initiatives (AEIs) over the years, but to improve the company’s overall features and outlook, it is prioritising Environmental, Social, and Governance (ESG) considerations.
“We have incorporated the Environmental, Social and Governance (ESG) considerations into our AEIs, which further enhanced the overall features and quality of our properties as well as meet the investment criteria of our foreign unitholders.
“We will continue to do AEIs while aiming to incorporate more ESG criteria into our due diligence processes,” she says in an interview with Business Today.
The AEIs, according to Kit May, is one of the initiatives used by the company to preserve and maintain the value of properties.
“If we can meet our tenants’ needs, it will lead to better retention of existing tenants and attract new tenants,” Kit May says.
As of Sept 30, 2021, Axis-REIT has invested RM9.9 million in enhancement property covering from routine enhancements to repairing the driveway of Axis Vista.
“In 2021, we implemented various enhancement work including the refurbishment of drainage systems, air conditioning systems, and CCTV systems, as well as the installation of new LED lighting with sensors.
“Apart from the routine enhancements, we also repaired the driveway of Axis Vista in Petaling Jaya, which was damaged due to the collapse of Sungai Penchala’s retaining wall.
“As of September 30, 2021, we have invested RM9.9 million for the enhancement of properties,” she says.
On the other note, the company acquisition process is expected to be smoother next year due to the reopening of the economy. At the same time, the company also is targeting to exceed the current year’s total figure.
“For 2022, we are targeting to exceed the current year’s total acquisition figure, which is: Grade A logistics and manufacturing facilities with long-term leases from tenants with strong covenants, Well-located retail warehousing in a location ideal for last-mile distribution, Offices, business parks and industrial properties with potential for future enhancements,” she says.
Furthermore, Axis-REIT will continue to focus on industrial properties for next year, she says, “The demand for industrial properties is still high in particular for distribution centres and manufacturing warehouses.
As for business challenges facing the pandemic, Kit May explains Axis-REIT operations were not heavily affected as the nature of business is tenants operated. Hence, the business operated as usual through pandemics.
“The company’s operations are not much different as 92% of our properties are under industrial properties where most of our tenants operated throughout the pandemic as compared to other types of properties.
“The reopening and lifting of travel restrictions are expected to speed up our acquisition process moving forward, as we can now perform due diligence on site.
“As the owner of the properties, we have been working together with the tenants to implement appropriate measures and ensure all the standard operating procedures are complied with at all times,” she says.
