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KUALA LUMPUR: Axis Real Estate Investment Trust (Axis-REIT) has proposed to acquire an industrial premise from BSS Development Sdn Bhd (BSS) and Matrix IBS Sdn Bhd for RM48mil cash.
Both BSS and Matrix IBS are wholly owned subsidiaries of Matrix Concepts Holdings Bhd.
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-REIT said an international company, involved in the manufacturing of machinery 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.
It added that the current rental is RM250,000 per month where the rental rate shall increase by 8% for the period between March 1, 2026 to Feb 28, 2029.
The purchase price was based on the market value of RM48mil, as appraised by independent registered valuer, First Pacific Valuers Property Consultants Sdn Bhd, in its valuation report dated Aug 23, 20230.
Axis-REIT said 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 Dec 31, 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.
Axis-REIT Managers Bhd chief executive officer/executive director Leong Kit May said: “We are pleased with this proposed acquisition as it checks all our investment objective boxes of high-quality accretive properties with strong recurring rental income.
“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.”
