Axis REIT Managers Berhad announced that it has entered into a sale and purchase agreement with a data centre operator for the proposed disposal of Axis Steel Centre@SiLC, for a total lump sum cash consideration of RM162 million.
The Property is located along Jalan SiLC 1/5, within the locality known as Kawasan Perindustrian SiLC in Nusajaya, Johor. This location is approximately 4.0 kilometres to the north of Gelang Patah town and 24.0 kilometres to the west of Johor Bahru city centre.
A plot of industrial land which is improved upon with 2 single-storey detached factories, a double-storey office building, a double-storey canteen and maintenance office, a single-storey training centre, a 3-storey worker hostel and other ancillary buildings
Axis said the proposed disposal is in line with the Fund’s investment objectives. The Manager believes that in the 9 years of owning this Property, it has maximised the income-generating potential of this asset and there is limited upside for future rental growth in its current capacity as a manufacturing facility. Given the favourable price of this asset sale and leveraging on the best and highest use of the Property as a data centre development, this is an opportune time to dispose of the Property and to redeploy the capital towards potential yield-accretive properties.
