Axis-REIT proposes placement of shares to raise RM178 mln

KUALA LUMPUR, Nov 14 (Bernama) -- Axis Real Estate Investment Trust (Axis-Reit) proposes to undertake a placement of its shares to raise an estimated RM178 million for the repayment of bank financing.

In a filing with Bursa Malaysia today, the company said the proposed placement entails the issuance of up to 100,000,000 placement units, representing up to approximately 6.09 per cent of 1.64 billion units issued as at Nov 3, 2022. 

“The issue price of the placement shares will be determined in consultation with the placement agents on the price-fixing date and will be based on a discount of not more than 10 per cent to the volume weighted average market price of the units for five market days prior to the price-fixing date,” it said. 

The company noted that the proposed placement will enable Axis-REIT to raise funds expeditiously to partly repay its existing bank financing, which was taken up to finance the acquisitions of properties and carry out development projects.

 “This will provide Axis-REIT with sufficient financial headroom to make future acquisitions of new properties and carry out development projects via bank financing which is in line with its capital management and growth strategy,” it said. 

As at Sept 30, 2022, it said the financing ratio of Axis-REIT stood at 35.77 per cent, and the proposed placement will involve the issuance of new units, which will increase the number of units in circulation and will improve the trading liquidity of the shares.

Looking forward, the company said it would continuously review Axis-REIT’s property portfolio, leveraging on its industry insights to re-assess and re-evaluate the portfolio to ensure it remains well-positioned to meet the future needs of tenants and the broader market.

“The manager believes that industrial properties will continue to generate stable and sustainable returns for the unitholders,” it said. 

— BERNAMA