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KUALA LUMPUR: Axis Real Estate Investment Trust (Axis REIT) is acquiring two warehousing properties in Pasir Gudang industrial area for RM27 million in Johor, said its manager Axis REIT Managers Bhd (ARMB). It is acquiring a single-storey detached factory with ancillary buildings from Oriental Pulse Sdn Bhd for RM12.5 million, and a single-storey warehouse building with a three-storey office plus guard house and ancillary buildings from Niro Ceramic (M) Sdn Bhd for RM14.5 million. Both properties are developed by the Johor State Economic Development Corp. The property has a gross yield of 10.26% and a triple net yield projected at 9.1%. The acquisition is yield accretive at 23 sen per unit. The second property is a sale and leaseback arrangement with Niro Ceramic (M) Sdn Bhd, which has agreed to lease it for six years at a monthly rental of RM130,000 for the first three years with a step-up in rental on the second three years. It has an option to renew the lease for an additional six years. The property has a gross yield of 10.55% and a triple net yield projected at 9.77%. The yield is 345 sen per unit.(01-02-2008 The Edge)
