OTHERS AXIS REAL ESTATE INVESTMENT TRUST ("AXIS-REIT" OR "FUND") PROPOSED DEVELOPMENT OF BUKIT RAJA DISTRIBUTION CENTRE 2 ("BRDC 2"), AN EXISTING PROPERTY OF AXIS-REIT
| AXIS REAL ESTATE INVESTMENT TRUST |
| Type | Announcement |
| Subject | OTHERS |
| Description | AXIS REAL ESTATE INVESTMENT TRUST ("AXIS-REIT" OR "FUND")
PROPOSED DEVELOPMENT OF BUKIT RAJA DISTRIBUTION CENTRE 2 ("BRDC 2"), AN EXISTING PROPERTY OF AXIS-REIT |
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1. INTRODUCTION AND BACKGROUND OF BRDC 2
The Board of Directors (“Board”) of Axis REIT Managers Berhad (“ARMB” or “Manager”), the management company of Axis-REIT, wishes to announce that Axis-REIT is embarking on a proposed development of BRDC 2 (“Proposed Development”), its existing property located at Kawasan Perindustrian Bukit Raja Selatan, Shah Alam, Selangor Darul Ehsan.
The Manager had on 5 March 2021, announced the proposed acquisition of BRDC 2. In the same announcement, the Manager announced that BRDC 2 had a good development potential for a warehouse, and the Manager intended to explore development opportunities subject to due assessment and detailed feasibility study on the site/proposed development plan. The acquisition of BRDC 2 was completed on 31 March 2021.
The Board is pleased to announce that the Manager has secured Shopee Express Malaysia Sdn Bhd, an e-commerce operator (“Lessee”) to lease the entire BRDC 2 upon completion of the Proposed Development.
2. LEASE AGREEMENT
RHB Trustees Berhad, as the trustee for Axis-REIT, has on 20 January 2022 entered into a 15-year lease agreement (“Lease Agreement”) with Shopee Express Malaysia Sdn Bhd. The Lessee agreed to lease the entire BRDC 2 upon completion of the Proposed Development in accordance with the terms and conditions as stipulated in the Lease Agreement.
3. DETAILS OF THE PROPOSED DEVELOPMENT
The Proposed Development entails the construction of one single storey warehouse and ancillary buildings, enhancement of an existing 3 storey office block with a total gross built-up area of approximately 620,096 square feet. The Proposed Development is expected to commence in the first quarter of 2022 and to be completed for handover to the Lessee no later than 31 August 2023.
The estimated development cost (excluding land) of the Proposed Development approximates RM130.0 million representing 3.86% of Axis-REIT’s total asset value of RM3.36 billion based on its latest audited financial statements for the year ended 31 December 2020 and is below the 15% threshold imposed under the Guidelines on Listed Real Estate Investment Trusts issued by the Securities Commission Malaysia.
4. INTERESTS OF DIRECTORS, MAJOR SHAREHOLDER OF THE MANAGER, MAJOR UNITHOLDERS OF AXIS-REIT AND/OR PERSONS CONNECTED TO THEM
None of the Directors and major shareholder of the Manager, major unitholders of Axis-REIT and/or persons connected to them has any interest, direct or indirect, in the Proposed Development.
This announcement is dated 20 January 2022. |
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Announcement Info
| Company Name | AXIS REAL ESTATE INVESTMENT TRUST |
| Stock Name | AXREIT |
| Date Announced | 20 Jan 2022 |
| Category | General Announcement for PLC |
| Reference Number | GA1-19012022-00069 |
