PETALING JAYA: Axis Real Estate Investment Trust’s (Axis-REIT) trustee RHB Trustees Bhd has entered into a sale and purchase agreement to acquire a logistics warehouse facility in Johor from Venice Tulip Sdn Bhd (VTSB) for RM32 million cash.
According to the valuation report by Savills (Malaysia) Sdn Bhd dated Oct 14, 2021, the market value of the property is RM35 million.
The property will be leased back to VTSB upon completion of the acquisition for a fixed period of three years with a monthly rental fee of RM260,735. The property located in Kawasan Perindustrian Pasir Gudang, Johor sits on 12.8 acres of leasehold land with 276,000 sq ft of net lettable area. The property comprises a single storey warehouse with a mezzanine floor plus supporting structures and three blocks of single storey warehouse.
The acquisition will be funded by bank financing which will increase Axis-REIT’s financing ratio to 33.7% of its audited total assets as at Dec 31, 2020. Upon completion, the acquisition will contribute positively to the earnings of Axis-REIT.