Axis Real Estate Investment Trust (Axis-REIT) is set to expand its diverse portfolio with the proposed acquisition of Temerloh Mall, a two-storey shopping complex located in Taman Damai, Temerloh, Pahang. The RM25.75 million cash transaction, subject to regulatory approval, reflects Axis-REIT’s strategic approach to providing unitholders with consistent income distributions and enhancing its net asset value through the acquisition of premium, income-generating assets.
The freehold property boasts a substantial net lettable area spanning 93,854 square feet (sq ft) and will be leased to TF Value-Mart Sdn Bhd, a reputable retail operator known for its strong presence in the market. This strategic leasing arrangement aligns with Axis-REIT’s overarching goal of securing high-quality properties that yield substantial recurring rental income.
Axis-REIT’s Chief Executive Officer, [CEO’s Name], emphasized that this proposed acquisition is in perfect harmony with the trust’s long-term growth strategy. He stated, “The addition of Temerloh Mall to our portfolio is projected to significantly bolster Axis-REIT’s distributable income, thereby delivering greater value to our unitholders. We remain committed to our strategy of acquiring income-accretive properties that contribute positively to our financial performance.”
The acquisition is slated for completion by the first quarter of the upcoming year, aligning seamlessly with Axis-REIT’s mission to provide consistent and robust earnings for unitholders. It is expected to make a favorable contribution to the fund’s earnings for the financial year ending December 31, 2024.
As Axis-REIT continues to grow and diversify its property portfolio, it reaffirms its commitment to delivering attractive returns and expanding its presence in the real estate investment trust sector. Despite the proposed acquisition, the trust’s units remained unchanged at RM1.78 as of Friday’s closing, maintaining its strong market capitalization at RM3.20 billion.
This strategic move into Temerloh exemplifies Axis-REIT’s dedication to seeking out promising opportunities and securing high-quality assets that will further enhance the fund’s performance, delivering value to both unitholders and investors alike.