Tuesday, August 9

Axis reit ready for GST

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KUALA LUMPUR: Trust manager, Axis REIT Managers Bhd, is prepared for the launch of the goods and services tax (GST), saying it will have a neutral impact on the real estate investment trust (REIT) industry.

Chief executive officer, Datuk Stewart LaBrooy, said Axis REIT was now fully adopting the GST-compliant system and has registered with the Royal Malaysian Customs.

“We have been actively engaged with the Malaysian REIT Managers Association and have talks with the Customs to clear up certain grey areas in the legislation,” he told a press conference after a briefing on the trust’s second-quarter results yesterday.

Acting chief operating officer, Leong Kit May, said the GST would only bring a minimum impact to Axis REIT in terms of acquisition of assets as the new tax regime would allow it to claim back 14 days after payment was made.

“The REIT has been paying services tax on some of the consultancies and management fees that the trust incurred.

“But once the GST is in place, whatever six per cent tax that we have paid, we can claim it back as input tax (and this will go) back to the system,” she said.

On another development, LaBrooy said, Axis REIT was eyeing to acquire assets in Johor, particularly in key industrial estates like Senai as well as brownfields (old industrial estates) which could be transformed into new development.

He said Axis REIT would also acquire assets worth RM472 million, of which three were located in Shah Alam and one each in Johor and Prai, Penang.

For the second quarter ended June 30 2014, Axis REIT reported a marginally lower pre-tax profit of RM21.89 million compared with RM24.38 million in the same quarter a year ago.

Revenue slipped to RM35.09 million from RM35.48 million previously. — Bernama