REVALUATION OF INVESTMENT PROPERTIES
| AXIS REAL ESTATE INVESTMENT TRUST |
|
Type | Announcement |
| Subject | REVALUATION OF INVESTMENT PROPERTIES |
Contents :
1. INTRODUCTION
The Board of Directors of Axis REIT Managers Berhad, the Manager of Axis Real Estate Investment Trust (“Axis-REIT”), has pleasure to announce that Axis-REIT has undertaken a revaluation exercise on the following properties:
- a) Axis Plaza
b) Axis Business Park
c) Crystal Plaza
d) Menara Axis
e) Infinite Centre
f) Axis Logistics Centre 1
g) Wisma Bintang
h) Kompleks Kemajuan
i) Kayangan Depot
- hereinafter referred to as (“Revaluation”)
2. PURPOSE OF REVALUATION
- The purpose of the Revaluation was to ascertain the current market value of the abovementioned 9 investment properties for accounting purposes in line with the Financial Reporting Standard (“FRS”) 140. Under the fair value model of FRS 140, the fair value of the investment property shall reflect market conditions at the balance sheet date (i.e. the investment property is revalued every year). As Axis-REIT has adopted the fair value model stipulated in FRS 140, Axis-REIT will be required to conduct a yearly revaluation of all its real estate properties.
3. EXEMPTION
- In relation to the Revaluation, under Clause 11.02 (2) of the Securities Commission (“SC”)’s Guidelines on Real Estate Investment Trust (“Guidelines”), revaluation of real estates must be approved by the SC before being incorporated into the accounts of the fund.
SC via its letter dated 19 December 2006 has approved the exemption from compliance with sub-clause 11.02 (2) of the Guidelines in relation to the revaluation of real estates of Axis-REIT to comply with the accounting requirements and the incorporation of the revalued amount into the financial statements of the fund, subject to the following conditions:
a) the valuation is undertaken by an independent valuer;
b) the valuation is carried out in accordance with the Malaysian Valuation Standards; and
c) a copy of the valuation report must be submitted to the SC, together with the annual report of the fund submitted to the SC pursuant to sub-section 107(1)(a)(i) of the Securities Commission Act 1993 and sub-clause 13.01(2) of the Guidelines.
4. REVALUATION SURPLUS
- The details of the revaluation surplus are set out below:
 | Address of real estates | Previously announced market value plus cost of asset enhancement RM | Open market value and date of valuation RM | Revaluation surplus RM |
| 1 | Axis Plaza * Lot 5, Jalan Penyair U1/44, Off Jalan Glenmarie, Temasya Industrial Park, Batu Tiga, 40150 Shah Alam, Selangor | 26,000,000 | 28,000,000 (13 Dec. 2006) | 2,000,000 |
| 2 | Axis Business Park * No 10, Jalan Bersatu 13/4, 46200 Petaling Jaya, Selangor | 93,012,200 | 93,600,000 (7 Dec. 2006) | 587,800 |
| 3 | Crystal Plaza * No 4, Jalan 51A/223, 46100 Petaling Jaya, Selangor | 65,000,000 | 68,000,000 (20 Oct 2006) | 3,000,000 |
| 4 | Menara Axis * No 2, Jalan 51A/223, 46100 Petaling Jaya, Selangor | 80,000,000 | 82,000,000 (7 Dec. 2006) | 2,000,000 |
| 5 | Infinite Centre Lot 1, Jalan 13/6, 46200 Petaling Jaya, Selangor | 32,045,715 | 32,500,000 (8 Sept. 2006) | 454,285 |
| 6 | Axis Logistic Centre 1 * Lot 24, Jalan Lebuh 1, Kawasan Perusahaan, Bandar Sultan Sulaiman, North Port, Pelabuhan Klang, Selangor | 13,500,000 | 13,500,000 (8 Dec. 2006) | - |
| 7 | Wisma Bintang * Lot 13A & 13B, Jalan 225, Section 51A, 46100 Petaling Jaya, Selangor | 36,000,000 | 36,000,000 (13 Dec. 2006) | - |
| 8 | Kompleks Kemajuan ** Lot 24, Jalan 19/1, 46300 Petaling Jaya, Selangor | 36,248,620 | 36,250,000 (19 Oct. 2006) | 1,380 |
| 9 | Kayangan Depot ** No 3, Jalan 15/6, Lot PT 16, Section 15, 40200 Shah Alam, Selangor | 18,349,326 | 18,400,000 (13 Dec. 2006) | 50,674 |
| TOTAL | 400,155,861 | 408,250,000 | 8,094,139 |
* The valuations were done by Colliers, Jordan Lee & Jaafar Sdn Bhd, an independent firm of professional valuers.
** The valuation were done by C H Williams Talhar & Wong Sdn Bhd, an independent firm of professional valuers.
5. EFFECTS ON THE NET ASSET VALUE
- The Revaluation represents an increase of 2.02% over the unaudited net book value of RM400,155,861 as at 31 December 2006 (before Revaluation). Based on the unaudited results as at 31 December 2006 (before Revaluation), the net asset value per unit of RM1.389 will increase to RM1.428 upon incorporation of the revaluation surplus of RM8,094,139.
The valuation reports in relation to the Revaluation are available for inspection at the registered office of Axis REIT Managers Berhad at Suite 11.1A, Level 11, Menara Weld, 76, Jalan Raja Chulan, 50200 Kuala Lumpur during normal office hours from Monday to Friday (except public holidays) for a period of 3 months from the date of this announcement.
Announcement Info
| Company Name | AXIS REAL ESTATE INVESTMENT TRUST |
| Stock Name | AXREIT |
| Date Announced | 29 Jan 2007 |
| Category | General Announcement |
| Reference No | CC-070129-62087 |
