PETALING JAYA: Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Berhad has entered into a sale and purchase agreement to acquire an industrial premise, presently built upon a 637,331 sq. ft. freehold land, from BSS Development Sdn Bhd (BSS) and Matrix IBS Sdn Bhd (Matrix IBS) for a cash consideration of RM48.0 million.
Both BSS and Matrix IBS are wholly owned subsidiaries of Matrix Concepts Holdings Berhad.
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.
The Sendayan Techvalley Industrial Park is well-connected to several major highways such as the North-South Expressway, KLIA Linkage Seremban-Bukit Nenas Highway, and Seremban-Port Dickson Highway.
An international company, involved in the manufacturing of machineries 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. 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 RM48.0 million, as appraised by independent registered valuer, First Pacific Valuers Property Consultants Sdn Bhd, in its valuation report dated Aug 23, 2023. 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 Malaysia.
Axis-REIT Managers Berhad CEO/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 six 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.”
