Thursday 28 Mar 2024
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KUALA LUMPUR: Axis REIT Managers Bhd, manager of the Axis Real Estate Investment Trust (Axis-REIT), has allocated between RM300 million and RM400 million for asset acquisitions next year, as it continues to increase its asset under management (AUM).

Axis REIT chief executive officer Datuk Stewart LaBrooy (pic), however, declined to say how many assets the trust is eyeing to acquire.

“It depends on what the value of the assets is, [although] we have our value target of between RM300 million and RM400 million,” he told reporters after the company’s extraordinary general meeting  yesterday.

At the meeting, Axis REIT unitholders approved its proposed acquisition of three properties in Shah Alam, Selangor amounting to RM280.5 million. This, combined with Axis REIT’s acquisition of a property in Nusajaya, Johor for RM153.5 million, will bring total AUM to 34 properties, with a combined value of some RM2.08 billion.

At present, Axis REIT has 30 properties under its belt with a combined value of RM1.64 billion.

“We are still in negotiations for a Penang asset purchase, and we are also looking at a couple of other assets as well. We hope to finalise these deals within the next three to six months, “ said LaBrooy.

On the imminent goods and services tax (GST), Axis-REIT acting chief operating officer and finance director Leong Kit May said the consumption tax will have a minimal impact on the REIT.

“GST replaces the current service tax which is an expense and impacts distribution per unit. In the case of GST, we are allowed to claim an input tax credit on GST paid for property expenses.

“However, for non-property expenses, the REIT may not be able to claim full input tax credit on years when there are issuance of equity,” said Leong.

Still, the GST amount that the REIT may be unable to claim on non-property expenses is less than that of the current service tax paid in a year, she added.

 

This article first appeared in The Edge Financial Daily, on November 20, 2014.

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