AXIS-REIT to purchase industrial property in Senai for RM34.62mil

KUALA LUMPUR: Axis Real Estate Investment Trust (REIT) has inked a conditional share and purchase agreement with Banyan Estate Malaysia Sdn Bhd for the proposed acquisition of a double-storey factory annexed with a double-storey office building and other ancillary buildings on a tract of land in Senai in Kulai, Johor, for RM34.61mil.

The group said in a stock exchange filing the plot of land measuring 0.8094ha is designated for medium industrial use with a 60-year leasehold expiring on Dec 2, 2069.

The property is currently leased to FCI Connectors Malaysia Sdn Bhd - an existing client of Axis-REIT at FCI Senai that manufactures connectors and connectors-based components - for a fixed period of five years with an option to renew for another five years.

The agreed monthly rental is an initial amount of RM20,653.40, or RM1.80 per sq ft of the lettable area of about 115,363 sq ft.

According to Axis-REIT, the proposed acquisition will be funded by its existing bank financing.