Axis Real Estate Investment Trust continues on its asset acquisition trail, this time it has entered into a sale and purchase agreement to acquire an industrial premise, presently built upon a 637,331 sq. ft. freehold land, from BSS Development Sdn. Bhd. and Matrix IBS Sdn. Bhd. for a cash consideration of RM48 million. Both BSS and Matrix IBS are wholly owned subsidiaries of Matrix Concepts Holdings Berhad.
The industrial premise, located in Sendayan Techvalley Industrial Park, Seremban; comprises a single storey detached factory, a single storey detached office, one double storey detached office, single storey canteen building, and other ancillary structures, with a net lettable area of 105,311 sq. ft.
Axis said an international company, involved in the manufacturing of machineries for mining, quarrying and construction, is currently leasing the said premise until February 2029, with an option to renew for four further terms of three years. The current rental is RM250,000 per month where the rental rate is set to increase by 8% for the period between 1 March 2026 to 28 February 2029.
The purchase price was based on the market value of RM48.0 million, as appraised by independent registered valuer, First Pacific Valuers Property Consultants Sdn. Bhd., in its valuation report dated 23 August 2023. The acquisition will be funded by existing bank financing, which will increase Axis-REIT’s financing ratio to 37.04% of the audited total assets as at 31 December 2022 which is still below the gearing limit of 50%, as prescribed by the Guidelines on Listed Real Estate Investment Trusts issued by the Securities Commission Malaysia.
Commenting on the proposed acquisition, Axis-REIT Managers Berhad chief executive officer/executive director Leong Kit May said, “The long lease of approximately 6 years will improve our portfolio’s weighted average lease expiry. Upon completion of this acquisition by the first half of 2024, we will be able to add on another facility to our existing portfolio.”
