Monday, November 21, 2011

Axis REIT private placement of 75m units oversubscribed

KUALA LUMPUR (Nov 21): Axis-REIT's proposed private placement of 75.18 million units has been oversubscribed by multiple times.

Axis REIT Managers Bhd, the management company, said on Monday the private placement represents 20% of the existing approved fund size of 375.90 million units and will increase the approved fund size to a maximum of 451.08 million units.

'The gross proceeds from the private placement which amounts to approximately RM184.20 million will be used to pare down the borrowings of Axis-REIT for the financial year to-date; lowering the gearing to 24%; providing Axis-REIT with sufficient headroom for more acquisitions,' it said.

The CEO of Axis REIT Managers, Stewart LaBrooy said the continuing interest in the Axis-REIT stock underlined the manager's ongoing efforts to improve stock liquidity as well as, delivering improved distributions and increasing the size of the Trust through yield accretive acquisitions.

On completion of the placement and the conclusion of the latest acquisitions, Axis-REIT would have RM 1.39 billion in assets under management and a market capitalisation of over RM 1.15 billion.'' Trading of the new units is expected to start at 9am on Dec 7.

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