NST Business
KUALA LUMPUR: Wasco’s Industrial Facility (WIF) has come onboard to Increase Axis-REIT’s stable of properties to 40 following an acquisition exercise involving an industrial facility in Gebeng, Kuantan.
“We are pleased that we have completed our 40th acquisition before the year end and merely a week after the completion of our private placement. The acquisition will contribute positively to the earnings of the Trust for 2017”, said Leong Kit May, CEO and Executive Director of Axis REIT Managers Bhd.
This latest acquisition will increase the total assets under management of the Trust to RM2.46 billion.
The property comprises two contiguous parcels of land, Land 1 and Land 2 with buildings which are used for pipe coating related industrial activities.
The leaseback of the property to Wasco Coatings Malaysia Sdn Bhd (WCM) is for an initial fixed period of fifteen years with an option to renew for another five years.
WIF is an entity under WCM.
The acquisition has a starting net yield of 7.0 per cent before Islamic financing cost. The agreed lease rental of the property has a step up of 10 per cent every three years.
Land 1 has been fully paid today at the purchase price of RM120 Million and the lease of the property has commenced accordingly as specified in the terms and conditions of the SPA, Axis said in a statement.
The balance purchase price of Land 2 at RM35 million will be paid at a later stage once the completion requirement is fulfilled in accordance to the SPA.
Ends