Published: Tuesday April 30, 2013 MYT 2:25:00 PM
Updated: Tuesday April 30, 2013 MYT 6:49:59 PM
Axis REIT to complete RM350m acquisitions this year
By John Loh
KUALA LUMPUR: Axis REIT is looking to sell one of its older assets as well as wrap up at least RM350mil in acquisitions this year.
CEO Datuk Stewart LaBrooy said on Tuesday Axis REIT had some RM444mil in assets under negotiation with various parties, including two warehouses in Shah Alam with its parent and sponsor, the Axis Group, worth RM220mil.
On its capital expenditure needs, LaBrooy said the property trust had put aside RM20mil this year, mainly for asset enhancement initiatives on its 160,000 sq ft Axis Business Campus in Section 51A, Petaling Jaya, which would be completed by June or July. Axis Business Campus was formerly known as Wisma Bintang.
He was speaking to newsmen after the company's first AGM.
Shareholders approved all 11 resolutions tabled at the meeting, which include the issuance and eventual placement of up to 90.76 million new units in the REIT, or about 20% of its existing fund size of 458.52 million units.
The placement would enable it to raise funds and repay debt incurred during its purchase of the Bayan Lepas Distribution Centre and Seberang Prai Logistics Centre Warehouse 3 in Penang.
“This is in line with Axis REIT's capital management and growth strategy of reducing gearing once it exceeds 35% of the total assets of the fund, and will provide Axis REIT with sufficient headroom to make future cash acquisitions, while improving the trading liquidity of its units," the firm said in a statement.