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Axis REIT To Acquire Land, Industrial Complex From Scomi For RM42 Million

Last update: 01/08/2016

KUALA LUMPUR, Aug 1 (Bernama)-- Axis REIT Managers Bhd (ARMB) is acquiring a parcel of land along with an industrial complex facility on it from Scomi Coach Sdn Bhd for RM42 million cash.



In a statement here today, ARMB said upon completion of the deal, the property, which is located in the Sungai Choh Industrial Area in Selangor, would be leaseback to Scomi Engineering Bhd (SEB) for a period of 15 years with an option to renew it for another five years.



"The proposed acquisition is consistent with the investment objectives and strategy of the Trust and will be accretive to Axis-REIT's distributable income," said Chief Executive Officer/Finance Director Leong Kit May.



ARMB said the acquisition would increase its assets under management to RM2.2 billion.



Meanwhile, in a filing to Bursa Malaysia, SEB said the sales of the properties by its subsidiary would enable the company to reprofile its payment obligation and meet the working capital.



-- BERNAMA