KUALA LUMPUR (June 30): Maybank Investment Bank is positive on recent news report that Axis REIT is a potential target for Sime Darby’s acquisition exercise to inject its commercial properties into a REIT.
In a note today, REIT analyst Wong Wei Sum of Maybank Investment Bank said that it was likely the REIT management company is Sime’s target rather than the REIT itself.
“In our view, it is likely the REIT management company that is Sime’s target rather than the REIT itself though we do not rule out the bundling of both in any potential sale,” Wong said.
She added that the potential entry of Sime into Axis REIT would mean a win-win scenario for both parties.
“Based on Sime’s latest 2013 annual report, it has approximately RM1.36 billion of investment properties in Malaysia comprising offices, convention centre, hotel, retail mall, showrooms and assembly plant. Hence, the potential entry of Sime into Axis REIT means substantial injection ahead, a win-win scenario,”
Wong maintains her “hold” rating on Axis with an unchanged target price of RM2.70 per share.
At 11:19 am, AxReit was down 1 sen to RM3.28 per share with 103,000 shares traded.