Axis Real Estate Investment Trust’s entered into a sale and purchase agreement to acquire an industrial complex, from Amsteel Mills Sdn. Bhd. for a cash consideration of RM49 million.
After which, AMSB it said will lease back the industrial complex for a period of 6 years at the starting rental of RM285,833.33 per month. The industrial complex is currently wholly and fully occupied by AMSB who is involved in the manufacturing and marketing of steel bars and wire rods.
The industrial complex, built upon a leasehold land measuring approximately 347,491 sq. ft., has a net lettable area of 199,500 sq. ft.. It is strategically located in the well-established Bukit Raja industrial area. It is conveniently situated near the major highways such as the Federal Highway and North Klang Valley Expressway.
Axis Reit said the purchase price was based on the market value of RM50.0 million, as appraised by independent registered valuer, Savills (Malaysia) Sdn. Bhd., in its valuation report dated 22 February 2024. The acquisition will be funded by existing bank financing, which will increase Axis-REIT’s financing ratio to 37.05% of the audited assets as at 31 December 2022. This is still below the gearing limit of 50%, as prescribed by the Guidelines on Listed Real Estate Investment Trusts issued by Securities Commission Malaysia.
