KUALA LUMPUR, April 11 (Bernama) -- Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd, has entered into a sale and purchase agreement to acquire a 1.55 million square feet logistics warehouse facility in Port of Tanjung Pelepas (PTP), Johor,  from Equalbase PTP Sdn Bhd (EPSB), for RM390 million.

The real estate investment trust said upon the completion of the proposed acquisition, which is expected to be by mid-2022, the property will be leased back to EPSB for a fixed term of 10 years.

“The starting monthly rental will be RM2.17 million for the first three years with subsequent upward adjustments at the start of year four until year 10,” it said in a statement.

The property is strategically located within the PTP Free Trade Zone and in close proximity to the Tuas checkpoint in Singapore, and is also a green building as certified by Green Building Index (GBI), which is in line with Axis-REIT’s environmental, social and governance goals (ESG) and strategies.

The property is situated on a 7.45-hectare subleased land, comprising a double-storey ramp-up warehouse cum three-storey office, sheltered car park, and office together with ancillary buildings.

The property, which was only built approximately three years ago, is well suited for warehousing purposes as it comes with 83 loading bays equipped with hydraulic dock levellers and an early suppression fast response (ESFR) sprinklers system.

Axis REIT Managers Bhd chief executive officer and executive director Leong Kit May noted that the acquisition will be the largest to date since the establishment of the fund.

“Axis-REIT intends to grow with the acquisition of high quality properties that are earnings accretive and with strong value propositions,” said Leong. — Bernama