Malaysia’s Shariah-compliant Axis REIT to expand portfolio with acquisition of new property

Malaysia’s Shariah-compliant Axis Real Estate Investment Trust (REIT) will expand its portfolio with the acquisition of a new property in a free trade zone in the southern state of Johor.

Axis REIT Managers has entered into a sale and purchase agreement with Rancak Beta Sdn Bhd to acquire a single-storey warehouse-cum office building at Pelabuhan Tanjung Pelepas for 65 million ringgit ($15.5 million).

The company said in an exchange filing on Monday that the proposed acquisition will be funded by existing bank financing.

Axis REIT reported profit of 55.6 million ringgit for the first half of 2019, down 4.5 per cent from the same period last year.

Its total net asset value stood at 1.66 billion ringgit at June 30.

Axis REIT’S portfolio comprised of 45 industrial properties as at end-June.

($1 = 4.1889 Malaysian ringgit)

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