Tuesday, October 25, 2011

Axis REIT buys DHL's warehouse in Penang for RM48.5m

KUALA LUMPUR: Axis REIT Managers Bhd is buying a logistic warehouse in Bayan Lepas, Penang from DHL PROPERTIES [] (Malaysia) Sdn Bhd for RM48.5 million.

Axis REIT said on Tuesday, Oct 25 that it would then leaseback the property to DHL.

It said its trustee OSK Trustees Bhd, has signed the agreement for the acquisition and leaseback of the three-storey office block and warehouse complex measuring 3.08 ha with a tenure of 60 years expiring on Jan 22, 2062.

'The property has a gross built-up of approximately 231,940 sq ft and will be leased back to DHL Properties for five and five year lease term,' it said.

Axis REIT Managers said the corporate exercise was to provide unit holders with stable distribution and to achieve growth in net asset value (NAV) per unit of the fund. This would be through acquiring properties which meet the manager's investment criteria.

'The proposed acquisition and leaseback of the property is consistent with the investment objective and strategy of Axis-REIT and it will be accretive to Axis-REIT's distributable income.

'The proposed acquisition and leaseback of the property will at the same time diversify and enlarge Axis-REIT's portfolio of properties and is expected to benefit the fund in the long term from economies of scale,' it said.

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