KUALA LUMPUR: Axis Reit Managers Bhd (ARMB) and Axis Real Estate Investment Trust (Axis REIT) has proposed to dispose Axis North Port LC1 for RM14.5 million to Freight Management (M) Sdn Bhd (Freight Management).
DISPOSAL PROPOSAL: Photo shows an overhead view of the Axis North Port LC1 complex. ARMB and Axis REIT has proposed to dispose of the complex for RM14.5 million.— Photo by horizon.my
Located in Port Klang, Axis North Port LC1 is an industrial complex comprising a single-storey detached
warehouse with a double-storey office annexe, a double-storey amenities building and other ancillary buildings.
ARMB confirmed that OSK Trustees Bhd, the trustee for Axis REIT, has entered into a sale and purchase agreement for the disposal of Axis North Port LC1.
The proposal is in line with meeting the objective of Axis REIT, it said in a statement.
“With an ownership of less than five years, ARMB believes it has optimised the potential of the property as ARMB feels that there is a limited upside to future rental growth,” it said.
Hence, ARMB found it strategic to dispose and re-deploy the capital for more yield accretive properties.
The net gain on the proposed disposal of Axis North Port LC1 is estimated to be RM764,000 after netting off five per cent real property gain tax.
The net gain will be distributed to unitholders upon completion of disposal of the proposed disposal of Axis North Port LC1 which translates to distribution of 0.20 sen per unit.
The proposal is expected to be completed on or before June. —Bernama