AXIS REAL ESTATE INVESTMENT TRUST (“Axis-REIT” OR THE “FUND”) REVALUATION OF INVESTMENT PROPERTIES PURSUANT TO FINANCIAL REPORTING STANDARDS 140
| AXIS REAL ESTATE INVESTMENT TRUST |
| Type | Announcement |
| Subject | AXIS REAL ESTATE INVESTMENT TRUST (“Axis-REIT” OR THE “FUND”) REVALUATION OF INVESTMENT PROPERTIES PURSUANT TO FINANCIAL REPORTING STANDARDS 140 |
| Contents | 1. INTRODUCTION The Board of Directors (“Board”) of Axis REIT Managers Berhad (“ARMB” or the “Manager”), the management company of Axis-REIT, wishes to announce that Axis-REIT has undertaken a revaluation exercise on the following properties: a) Axis Logistics Centre 1 b) Wisma Bintang c) Wisma Kemajuan d) 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 4 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 on all its real estate properties. The amended Clause 11.02(5) of the Securities Commission (“SC”)’s Guidelines on Real Estate Investment Trusts (“Guidelines”), vide Guidance Note 5, released on 8 February 2007, stipulated that additional revaluations may be carried out in the interim periods and such Revaluation must be conducted by an independent valuer and in accordance with the Malaysian Valuation Standards. A copy of the valuation report must be submitted to the SC together with the annual report of the fund as required under sub-clause 13.01(2) of the Guidelines. Hence, the Revaluation is not subject to the SC’s approval. 3. REVALUATION SURPLUS The details of the revaluation surplus are set out in the table below. 4. EFFECTS ON THE NET ASSET VALUE The Revaluation represents an increase of 8.92% over the unaudited net book value of RM107,696,893 as at 31 December 2007 (before Revaluation). Based on the unaudited results as at 31 December 2007 (before Revaluation), the net asset value per unit of RM1.579 will increase to RM1.625 upon incorporation of the revaluation surplus of RM9,603,107. 5. DOCUMENTS AVAILABLE FOR INSPECTION The valuation reports in relation to the Revaluation are available for inspection at the: 5.1 registered office of the Manager at Suite 11.1A, Level 11, Menara Weld, 76, Jalan Raja Chulan, 50200 Kuala Lumpur; and 5.2 Manager’s office at Suite 6.04 Penthouse, Wisma Academy, 4A Jalan 19/1, 46300 Petaling Jaya, Selangor during normal office hours from Monday to Friday (except public holidays) for a period of 3 months from the date of this announcement. This announcement is dated 7 January 2008. |
REVALUATION SURPLUS
The details of the revaluation surplus are set out below:
 | Name and 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 Logistic Centre 1 * Lot 24, Jalan Lebuh 1, Kawasan Perusahaan, Bandar Sultan Sulaiman, North Port, Pelabuhan Klang, Selangor | 13,598,200 | 13,600,000 (12 Nov.2007) | 1,800 |
| 2 | Wisma Bintang * Lot 13A & 13B, Jalan 225, Section 51A, 46100 Petaling Jaya Selangor | 36,000,000 | 36,000,000 (9 Nov.2007) | nil |
| 3 | Wisma Kemajuan ** Lot 24, Jalan 19/1 46300 Petaling Jaya Selangor | 39,557,790 | 45,900,000 (14 Nov.2007) | 6,342,210 |
| 4 | Kayangan Depot ** No. 3, Jalan 15/6, Lot PT 16 Section 15, 40200 Shah Alam Selangor | 18,540,903 | 21,800,000 (16 Nov.2007) | 3,259,097 |
| TOTAL | 107,696,893 | 117,300,000 | 9,603,107 |
* The valuations were done by Colliers, Jordan Lee & Jaafar Sdn Bhd, an independent firm of professional valuers.
** The valuations were done by C H Williams Talhar & Wong Sdn Bhd, an independent firm of professional valuers.
Announcement Info
| Company Name | AXIS REAL ESTATE INVESTMENT TRUST |
| Stock Name | AXREIT |
| Date Announced | 7 Jan 2008 |
| Category | General Announcement |
| Reference No | CC-080107-355B9 |
