Wednesday, September 28, 2011

Axis REIT buys Penang industrial land for RM59m

KUALA LUMPUR: Axis REIT Managers Bhd is acquiring two pieces of industrial land near Bukit Mertajam, Penang for RM59 million from'' Apex PROPERTIES [] Sdn Bhd.

It said on Wednesday, Sept 28 the first plot of land was 54,775 sq. metres with land tenure of 60 years leasehold expiring on Oct 22, 2052. The second piece of land was about 0.0823 ha with land tenure of 60 years leasehold expiring on May 19, 2068. Aix REIT said the property was within the Bukit Tengah Industrial Park.

It added that it intended to use a debt facility of about RM 59.0 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 31 December 2010, which is below the gearing limit of 50% prescribed by the REIT Guidelines.

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