Axis Real Estate Investment Trust's (Axis REIT) trustees, RHB Trustees Bhd is acquiring a logistics warehouse facility in Johor for RM32 million, in line with its investment objectives and growth strategy.
The proposed acquisition of the property is also intended to increase Axis REIT's asset value (NAV) per unit by acquiring high-quality, earnings-accretive properties with strong recurring rental income, according to a stock exchange filing.
"It would enable Axis-REIT to strengthen its portfolio of industrial properties and is expected to benefit the fund in the long-term," it said.
The property, which has a gross floor area of about 276,000 square feet, is situated on a 5.2-hectare site in the Pasir Gudang Industrial Zone.
It is made up of four blocks of single-story warehouses that were built by Johor Corporation (JCorp) over 17 years ago.
JCorp spent RM17.15 million on the warehouse facility, which is close to Johor Port, the world's largest palm oil terminal with a storage capacity of 460,000 metric tonnes.
The warehouse facility was leased to Venice Tulip Sdn Bhd (VTSB) effective September 17, 2021.
Axis-REIT proposed to acquire the property from VTSB on October 25, 2021.
Following the completion of the acquisition, it intends to lease the property back to VTSB for a fixed period of three years at a monthly rental fee of RM260,735.
Venice Tulip is involved in the acquisition, sale, rental, and management of self-owned or leased real estate, including non-residential buildings and land.