KUALA LUMPUR (June 22): Axis REIT Managers Bhd (ARMB), the manager of Axis Real Estate Investment Trust (Financial Dashboard) (Axis-REIT), is acquiring an industrial facility in Port Klang, Selangor from Haisan Resources Bhd ( Financial Dashboard) for RM46 million cash on an acquisition and leaseback arrangement.

The proposed acquisition of seven parcels of leasehold industrial land with buildings comes with a leaseback deal for 15 years with Haisan, with an option to renew for another 15 years.

"The proposed acquisition of the property is conditional upon obtaining a valuation from an independent valuer registered with the Securities Commission Malaysia supporting the acquisition price and satisfactory due diligence results.

"(It is also) subject to the terms and conditions to be negotiated and finalised in the sale and purchase agreement to be entered later," said ARMB in a statement today.

Axis-REIT (fundamental: 0.9; valuation: 0.15) currently owns a portfolio of 34 commercial, office and office/industrial real estate in Malaysia. 

In a separate filing with Bursa Malaysia today, Haisan (fundamental: 0; valuation: 0) said it has accepted a letter of offer for the Port Klang property from Axis REIT.

The agreement will see Haisan paying an initial rent of RM336,670.50 per month to Axis-REIT for the first three-year term of the initial period.

For the rent revision for the second, third, fourth and fifth three-year terms  of the initial period, Haisan agrees to an 8% increase in rent for the second term (years 4-6) and a 10% increase in rent for each of the three-year terms thereafter.

Haisan, an integrated cold-chain logistics services provider had previously scrapped the sale of the Port Klang property to Crystal Beacon Sdn Bhd.

Shares in Axis-REIT closed down 0.28% at RM3.50 today, bringing a market capitalisation of RM1.92 billion. Haisan's shares, meanwhile, have been suspended pending a financial regularisation plan