PETALING JAYA: Axis Real Estate Investment Trust Managers Bhd (Axis REIT) has proposed to acquire three properties in Shah Alam, Selangor, totalling RM280.5mil, from three separate parties.
Axis REIT said the three parties were Great Avenue (M) Sdn Bhd, Exceptional Landmark Sdn Bhd and Able Heights (M) Sdn Bhd.
It said it entered into sale and purchase agreements with them through RHB Trustees Bhd for the proposed acquisitions.
“The proposed acquisitions are in line with the manager’s investment objectives and the growth strategy of Axis REIT to provide unitholders with stable income distribution and to achieve growth in the net asset value (NAV) per unit, by acquiring high quality, earnings accretive properties with strong recurring rental income,” it said.
Axis REIT added that it would like to diversify and enlarge its portfolio of properties and that the acquisitions were expected to benefit the fund in the long term as a result of economies of scale.
According to Axis REIT, the proposed acquisition from Great Avenue is worth RM183mil, the acquisition from Exceptional Landmark is worth RM52.5mil while the acquisition from Able Heights is for RM45mil.
In a separate statement to Bursa Malaysia, Axis REIT announced that its net profit for its second quarter ended June 30, 2014, slipped 10% to RM21.89mil from RM24.38mil in the previous corresponding period, while revenue was flattish at RM35.09mil from RM35.48mil a year earlier.
“The realised net income from operations was RM20.76mil after deducting total expenditure of RM14.32mil, of which RM5.38mil were attributable to property expenses and RM8.94mil to non-property expenses,” the company said.
Axis REIT said it was optimistic about its prospects going forward.
“In view of the current satisfactory performance of Axis REIT’s existing investment portfolio and its growth strategy to actively pursue quality acquisitions, it will be able to maintain its current performance for the financial year ending Dec 31, 2014.”
~ By THE STAR
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