| BREAKING NEWS | Hud Aryan's body found stuck at a tree near the river bank in Tanah Merah this afternoon - Fire and Rescue Department | |
KUALA LUMPUR, Feb 26 (Bernama) -- Axis Real Estate Investment Trust (Axis-REIT) is disposing of The Annex in Petaling Jaya for RM24.2 million, with net gains from the transaction to be distributed to unitholders.
In a filing with Bursa Malaysia today, Axis-REIT said its trustee, RHB Trustees Bhd, has entered into a sale and purchase agreement (SPA) with Basic Eight (M) Sdn Bhd for the proposed disposal of the property.
“The Annex comprises a single-storey warehouse with an annexed double-storey office, spanning a land area of approximately 66,182 square feet.
“Axis-REIT originally acquired the asset in October 2012 for RM12 million, and the sale price of RM24.2 million represents a strategic divestment opportunity that aligns with Axis-REIT’s portfolio optimisation strategy,” the company said.
Axis-REIT also said the disposal is expected to generate a net gain of RM9 million, which it plans to fully distribute to its unitholders as tax-exempt income, translating to an additional income distribution of 0.44 sen per unit.
“Additionally, the remaining proceeds will be used to reduce gearing, enhancing Axis-REIT’s financial flexibility for future acquisitions or developments.
“The transaction is also expected to reduce Axis-REIT’s financing ratio to 34.3 per cent of audited total assets as at Dec 31, 2023.
Axis REIT Managers Bhd chief executive officer and executive director Leong Kit May described the disposal as a strategic move.
“After 12 years of ownership, the property, a 42-year-old building currently operating as a sports centre, has reached a point where unlocking its value through the disposal is in the best interest of Axis-REIT and its unitholders.
“With a fair disposal price, we believe this disposal will help optimise the overall performance of our portfolio,” she said.
-- BERNAMA
