RHB Trustees Bhd, the trustee for Axis Real Estate Investment Trust’s (Axis-REIT), has entered into a sale and purchase agreement to acquire a 1.54 million sq ft logistics warehouse facility in Pelabuhan Tanjung Pelepas (PTP), Johor from Equalbase PTP Sdn Bhd (EPSB) for RM390mil.
In a statement, Axis-REIT said upon the completion of the proposed acquisition, which is expected to be by mid-2022, the property will be leased back to EPSB for a fixed term of 10 years.
The starting monthly rental will be RM2.17mil for the first three years with subsequent upward adjustments at the start of year four until year 10.
The property, which was built approximately three years ago, is situated on an 18.4-acre subleased land. It comprises a double-storey ramp-up warehouse cum 3-storey office, sheltered car park and office together with ancillary buildings.
According to the statement, the property is well suited for warehousing purposes as it comes with 83 loading bays equipped with hydraulic dock levellers and early suppression fast response (ESFR) sprinklers system.
Based on the valuation report by First Pacific Valuers Property Consultants Sdn Bhd dated 31 March, the market value of the property is RM390mil.
The proposed acquisition will be funded by bank financing, increasing Axis-REIT’s gearing ratio to 37.2 percent of its audited total assets as at Dec 31, 2021.
Axis REIT Managers Bhd CEO/executive director Leong Kit May said the proposed acquisition would be the largest to date since the establishment of the fund.
She said it also highlighted Axis-REIT’s intent to grow with the acquisition of high-quality properties that are earnings accretive and with strong value propositions.
“The property, a modern ramp-up logistics facility and well equipped for logistics purposes, is located within the vicinity of PTP, Malaysia’s premier trans-shipment port.
“Furthermore, the property is a certified green building by GBI and the proposed acquisition signifies Axis-REIT’s commitment towards ESG and to generate sustainable income for the fund,” Leong said.