Axis-REITeyes RM140m properties this year

By Bernama - January 22, 2020 @ 11:19am

KUALA LUMPUR: Axis Real Estate Investment Trust (Axis-REIT) aims to acquire RM140 million worth of properties this year.

Axis REIT Managers Bhd chief executive officer Leong Kit May said the company has already acquired seven properties worth RM288 million.

“Three of the properties are expected to be completed within the first quarter of this year.

”We are also actively looking around for RM140 million worth of REIT assets to be added into the portfolio,” she told reporters at a briefing on the company’s results for the fourth quarter ended Dec 31, 2019 here today.

She said Axis-REIT will continue to aggressively source and evaluate potential acquisition targets.

This includes Grade A logistics facilities and manufacturing facilities with long leases from tenants with strong covenants; retail warehousing in locations ideal for last-mile distribution; as well as office, business parks and industrial properties with potential for future enhancements.

Leong said last year, Axis-REIT had focused on industrial-type assets in the manufacturing and warehousing sector.

On outlook, she said the property management company is very upbeat on industrial assets, especially the warehousing segment, and foresee higher demand following the growth of e-commerce which requires warehousing and logistics space.

“We see an oversupply situation in the office segment. Nevertheless, we still continue to enjoy good occupancy rates.

“In fact, Menara Axis’s occupancy rate rose to 78 per cent from 68 percent in 2018,” she said.

Axis REIT is Malaysia’s first real estate investment trust, and was listed on Bursa Securities on Aug 3, 2005.

The company currently has a diverse portfolio of 48 properties strategically located in the Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah.