KUALA LUMPUR: Axis Real Estate Investment Trust (REIT) is taking over two auto service centres from Cycle & Carriage Bintang Bhd (CCB) in a deal worth RM125.1 million.
Axis REIT in a filing with Bursa Malaysia Securities Bhd today said it entered into two separate sale and purchase agreement for the 3S service centre fronting Federal Highway and 2S service centre in Batu Caves Industrial Park in Selangor.
The acquisitions are made for the purpose of leasing the two properties back to CCB.
Axis REIT said the acquisitions are in line with the fund's investment objectives and its growth strategy to provide the unitholders with stable income distribution and to achieve growth in
the net asset value per unit of Axis-REIT, by acquiring high quality, earnings accretive properties with strong recurring rental income.
The proposed acquisition of the properties will be
accretive to Axis-REIT's distributable income and adds to the portfolio of properties that will benefit the fund in the long term.
Both properties are located in prominent and established areas within Klang Valley.
Last year, luxury carmaker Mercedes-Benz Malaysia Sdn Bhd said its retail partners agreed to introduce the agency model in Malaysia.
Under the agency model, dealerships only act as an agent and are paid a fee for its sales service.
Sales contracts are between the customer and Mercedes-Benz Malaysia.
CCB holds one of the Mercedes-Benz dealership in Malaysia.