Tuesday, August 24, 2010

Axis-REIT in RM75.6m acquisition of Tesco JB hypermarket complex

KUALA LUMPUR: Axis Real Estate Investment Trust (Axis-REIT) has proposed to acquire the Tesco JB hypermarket complex for RM75.6 million cash from Bukit Indah (Johor) Sdn Bhd.

The latest acquisition will increase the assets under management to over RM1.2 billion, Axis-REIT said in a filing to Bursa Malaysia on Tuesday, Aug 24.

Axis-REIT trustee, OSK Trustees Bhd, has entered into a sale and purchase agreement with Bukit Indah Johor for the proposed acquisition.

Axis REIT Managers Bhd, the management company of Axis-REIT, intends to utilise a debt facility of RM75.60 million from Axis-REIT's existing credit lines.

The proposed debt financing will increase Axis-REIT's gearing ratio to 39% of audited total assets as at December 31, 2009, which is below the gearing limit of 50% prescribed by the REIT guidelines.

Axis REIT Managers expects the proposed acquisition to contribute positively to the fund's earnings for the financial year ending December 31, 2010.

The proposed acquisition is expected to be completed on or before Oct 31, 2010.

The Tesco JB Hypermarket Complex is located within the main commercial precinct of Setia EcoCity in Taman Bukit Indah, a comprehensive mixed development project. - Bernama

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