AXIS REIT ... July 09

Axis REIT has proposed to acquire an industrial complex Axis Steel Centre in Klang from Maximum Icon Sdn Bhd (MISB) for RM65 million cash.

The purchase of the complex, comprising warehouses and office building/spaces on 66,450 sq m of land, met with its investment objectives and growth strategy.
MISB is related to certain directors of the manager and Baiduri Kemas Sdn Bhd, a major unit holder of Axis-REIT.

The properties had been valued an independent firm of registered valuers and that the purchase consideration of RM65 million was at a discount of 13.33% to Axis Steel Centre’s market value of RM75 million.

Axis REIT also proposed to increase its fund size, after its earlier mandate expired on Dec 31, 2008.

Separately, Axis REIT announced on July 20 a net profit of RM12.54 million for its second quarter ended June 30, 2009, up 31% from RM9.59 million the previous corresponding quarter.