Axis Real Estate Investment Trust’s has entered into two sale and purchase agreements to acquire an industrial complex and a storage yard, from Amsteel Mills Sdn. Bhd which is part of Lion Group, for a total consideration of RM351.8 million.
The two said properties are located within the well-established Bukit Raja industrial area, conveniently situated near major highways such as Federal Highway and North Klang Valley Expressway. The industrial complex is adjacent to Axis Facility 2 @ Bukit Raja whilst the storage yard is located across Axis Facility 2 @ Bukit Raja. Upon the completion of these two acquisitions, Axis-REIT’s properties, within the Bukit Raja area, sit on an accumulated land area of over 119.1 acres or 482,061.5 square metres.
Axis-REIT said it will subsequently lease back the industrial complex to AMSB for a period of 6 years for an initial monthly rental of RM1.8 million. The industrial complex which will be acquired for RM313.0 million, has a lettable area of 924,000.0 square feet. This property sits on 2 pieces of 99-year leasehold land, expiring in 2085 and 2091 respectively, measuring a total of approximately 242,642.8 square metres.
The storage yard, to be acquired for RM38.8 million, will be rented out to new tenants. The yard rests on a 28,841.5-square metre, 99-year leasehold land which will expire in 2088.
The independent registered valuer, Savills (Malaysia) Sdn. Bhd., in its valuation report dated 19 April 2024, valued the two properties at a combined value of RM353 million (industrial complex at RM314 million and storage yard at RM39 million). The acquisitions will be funded by financing facilities, which will increase Axis-REIT’s financing ratio to 39.10% of the audited assets as at 31 December 2023.
The Manager is confident in securing a tenant for the storage yard and expects the property to be accretive by end 2025 which matches the payment terms of the storage yard which span over 2 years.”
