This article first appeared in The Edge Financial Daily on June 8, 2018

KUALA LUMPUR: Axis REIT Managers Bhd, the manager of Axis Real Estate Investment Trust (REIT), is acquiring two freehold industrial properties in Iskandar Malaysia, Johor for RM38.7 million.

The properties, with land areas of 1.83ha and 0.49ha, both comprise a single-storey detached factory, a mezzanine office and ancillary buildings, Axis REIT Managers said in a statement yesterday.

Priced at RM31.5 million and RM7.2 million respectively, they are located at i-Park, Indahpura, a gated and guarded industrial park at one of the main development corridors of Iskandar Malaysia.

The manager said the trustee for Axis REIT, RHB Trustees Bhd, has entered into a sale and purchase agreement with Axis AME IP Sdn Bhd (AAIP) for the transaction.

AAIP is a private limited company with principal activities in property development and investment.

The acquisition will be funded by existing bank borrowings of the REIT, the statement added.

“This is the second acquisition for the year, after our recent completion of our 42nd acquisition of the RM87 million Shah Alam industrial property, having completed its acquisition and leaseback from Teraju Sinar Sdn Bhd.

“We are also pleased that unitholders and stakeholders will stand to gain from the earnings made from our maiden development project of the Nestle Distribution Centre come June 1, 2018, and which will be reflected in our balance sheets, Axis REIT Managers chief executive officer Leong Kit May said.

The acquisitions made or completed in 2018 will provide the fund with a stable income stream and contribute positively towards its earnings, Leong further added.

The target completion of the property is by the third quarter of 2018, which will increase the number of properties from 42 to a total of 44, she said.