Axis Real Estate Investment Trust's (Axis-REIT) trustee, OSK Trustee Bhd, have entered into two sales and purchase agreements to acquire Wisma Academy and the Annex in Petaling Jaya for RM85 million from Academy Resources Sdn Bhd.
"The proposed acquisitions will also enable Axis-REIT to diversify and enlarge its portfolio of properties and is expected to benefit the trust in the long-term as a result of economies of scale," said Stewart LaBrooy, Chief Executive Officer, Axis REIT Managers Bhd, the manager of the trust.
He said the acquisition was in line with the trust's investment objectives as well as its growth strategy which was to provide unitholders with stable income distribution.
Wisma Academy is a 34,751 square meters six-storey office/warehouse building with a penthouse and a two-storey basement car park.
The Annex is a double-storey showroom, annexed with a single-storey warehouse with a gross floor area of 3,456 square meters.
LaBrooy said with the proposed acquisitions, the gearing level of the trust would be at 35 per cent.
He said as part of the trust's capital management strategy, it has proposed to allot and issue up to 90,762,819 new units, representing up to 20 per cent, of the existing approved fund size of Axis-REIT of 453,814,096 units.
"This will help bring down the gearing level and provide the trust with headroom for future acquisitions," he said.
Upon completion of the acquisitions, Axis-REIT would have a portfolio of 32 properties and manage assets worth over RM1.5 billion. -- Bernama
Source: www.btimes.com.my
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