OTHERS AXIS REAL ESTATE INVESTMENT TRUST ("AXIS-REIT" OR "FUND") TERMINATION OF THE LEASE AGREEMENT DATED 26 NOVEMBER 2014 WITH YONGNAM ENGINEERING SDN BHD
| AXIS REAL ESTATE INVESTMENT TRUST |
| Type | Announcement |
| Subject | OTHERS |
| Description | AXIS REAL ESTATE INVESTMENT TRUST ("AXIS-REIT" OR "FUND")
TERMINATION OF THE LEASE AGREEMENT DATED 26 NOVEMBER 2014 WITH YONGNAM ENGINEERING SDN BHD |
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1. INTRODUCTION
The Board of Directors of Axis REIT Managers Berhad (“Manager”), the management company of Axis-REIT, hereby announce that the tenant of Axis Steel Centre @ SiLC, having an address at No. 27, Jalan SiLC 1/5, Kawasan Perindustrian SiLC, 79200, Nusajaya, Johor (“Demised Premises”), namely Yongnam Engineering Sdn Bhd (“YESB”), had committed an event of default pursuant to a Lease Agreement dated 26 November 2014 (“Lease Agreement”) by virtue of its default in rental payments to Axis-REIT. RHB Trustees Berhad (as the trustee of Axis-REIT) (“Trustee”), has issued a Termination Notice dated 8 May 2023 to YESB to terminate the Lease Agreement (“Termination Notice”).
Further to the Termination Notice, the Trustee shall, on behalf of Axis-REIT, undertake the necessary actions to recover the outstanding rental payments from YESB including rentals for the unexpired period of the Lease Agreement, compelling action to be taken to withdraw encumbrances and deliver vacant possession of the Demised Premises back to Axis-REIT.
2. FINANCIAL AND OPERATIONAL IMPACT
Provision for impairment of a total RM7,312,377.41 todate has been made on the outstanding rental payments.
YESB is a tenant of Axis-REIT contributing 5% of the total revenue of the Fund for the financial year ended 31 December 2022. The Manager will be marketing the Demised Premises to prospective tenant(s) upon delivery of vacant possession by YESB back to Axis-REIT.
The Manager will make further announcement, on behalf of Axis-REIT, if there is material update on the above matter.
This announcement is dated 8 May 2023. |
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Announcement Info
| Company Name | AXIS REAL ESTATE INVESTMENT TRUST |
| Stock Name | AXREIT |
| Date Announced | 08 May 2023 |
| Category | General Announcement for PLC |
| Reference Number | GA1-08052023-00034 |
