Axis REIT buys a warehouse facility in Pasir Gudang as part of its expansion strategy
25 Oct 2021
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, which is close to Johor Port, the world’s largest palm oil terminal with a storage capacity of 460,000 metric tonnes.
“The good infrastructure and accessibility make it a sought-after location for industrial and logistic companies,” according to the report.
The warehouse facility is fully leased as of October 25, 2021, according to the filing.
The property has been leased to Venice Tulip Sdn Bhd for 30 years commencing from September 17, 2021, at RM260,735 per month.
Venice Tulip is involved in buying, selling, renting, and operating self-owned or leased real estate including non-residential buildings and land.