Axis Real Estate Investment Trust (KLSE:AXREIT) agreed to acquire freehold land with all buildings on Plot 111 in Kulai, Johor, Malaysia from AXIS AME IP Sdn Bhd for MYR 6.7 million on July 15, 2020. Axis REIT Managers Berhad entered into sale and purchase agreement to acquire freehold land with all buildings on Plot 111 in Kulai, Johor, Malaysia from AXIS AME IP Sdn Bhd for MYR 6.7 million on November 19, 2020.Under the terms of the transaction, the purchase price will be paid in cash and an earnest deposit (2%) of MYR 0.13 million has already been paid by RHB Trustees Berhad (RHB) to RHB’s solicitors as stakeholders prior to the execution of the agreement, balance deposit (8%) of MYR 0.53 million shall be paid by RHB to RHB’s solicitors as stakeholders upon the execution of the agreement. The total earnest deposit and the total balance deposit shall be held by RHB’s solicitors as stakeholders and shall be released to AXIS AME IP Sdn Bhd within 5 working days of the unconditional date. The balance purchase price (90%) for MYR 6 million will be paid by RHB within 90 days from the unconditional date, subject to the fulfillment of the terms and conditions of the agreement. Axis-REIT will not assume any liability pursuant to the acquisition. In related transactions, Axis REIT Managers Berhad agreed to acquire freehold land with all buildings on Plot 112 and Plot 132 in Kulai, Johor, Malaysia from AXIS AME IP Sdn Bhd. The combined purchase price for Plot 111, Plot 112 and Plot 132 in Kulai, Johor, Malaysia is MYR 28.195 million. The acquisition will be funded by existing bank financing of Axis-REIT for MYR 28.195 million for all properties. The transaction is subject to approvals from any other relevant authorities and/or parties (if required). The transaction was approved by RHB on July 15, 2020. The transaction was approved by BIMB Securities Sdn. Bhd. on July 27, 2020. The transaction is not subject to the approval of the unit holders of Axis-REIT. The Board of Directors of Axis REIT Managers Berhad having considered all aspects of the acquisition is of the opinion that the acquisition of is in the best interest of Axis-REIT. The audit committee of Axis REIT Managers Berhad, the management company of Axis-REIT having considered all aspects of acquisition is of the view that the terms of the acquisition are in the best interest of Axis-REIT, fair, reasonable and on normal commercial terms and not detrimental to the interests of the minority unit holders of Axis-REIT. The agreement will become unconditional when conditions precedent in respect of all the properties are fulfilled. The transaction is expected to close by end of 2020. The acquisition will be accretive to Axis-REIT’s distributable income. The transaction will not have any effect on total units in issue and substantial unit holders’ unit holding, no material impact or changes to the unaudited NAV, contribute positively to the earnings, increase gearing ratio to 29.35% of audited total assets of Axis-REIT. BIMB Securities Sdn. Bhd acted as the financial advisor and RHB Trustees Berhad acted as the trustee for Axis Real Estate Investment Trust. C H Williams Talhar & Wong Sdn. Bhd. acted as the appraiser for the properties.