KUALA LUMPUR, Aug 28 (Bernama) -- Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd has entered into sale and purchase agreements to acquire two warehouse facilities from Malconrep Depot (M) Sdn Bhd (MDSB) and Dayang Mewah Sdn Bhd (DMSB) for RM158.64 million.

In a statement, Axis-REIT said it plans to lease both properties -- with a combined land area of 62,356.96 square metres -- to MDSB for logistics and warehousing purposes.

The properties are located in Pulau Indah Industrial Park, Port Klang, Selangor.

The first warehouse facility, to be acquired for RM110.07 million from MDSB, features two main blocks, including a single-storey warehouse connected to a double-storey office building and a separate single-storey warehouse, along with other ancillary buildings

“The second warehouse facility, to be acquired for RM48.56 million from DMSB, comprises a single-storey warehouse annexed with a double-storey office building and other ancillary structures.

“It will be leased for a fixed period of five years with an initial monthly rental of RM251,207.12, subject to agreed step-ups throughout the lease term,” it said, adding that both properties are situated on a leasehold land which expires in 2097.

Axis-REIT said the acquisitions will be funded through financing facilities, which will raise its financing ratio to 36.6 per cent of audited assets as of Dec 31, 2023.

Axis REIT Managers Bhd chief executive officer and executive director, Leong Kit May, said the addition of the fully occupied warehousing facilities not only enhances the company’s portfolio but also positions Axis-REIT to deliver stable income distributions and long-term net asset value growth for its unitholders.

“The properties are strategically located near Westport, one of the major shipping terminals in Port Klang, with excellent connectivity to major highways.

“We believe these acquisitions will be accretive to Axis-REIT’s distributable income, further solidifying our presence in key industrial hubs,” she said.