KUALA LUMPUR (Oct 30): Axis Real Estate Investment Trust (KL:AXREIT) has raised RM449.73 million through a private placement exercise, which will be used to support the REIT's strategy to pursue high-quality, yield-accretive acquisitions, and enhance its existing portfolio.
The issue price was fixed at RM1.71 per unit, which was determined at the end of a book-building process. The price represents a 5.1% discount to the volume-weighted average market price of RM1.802 per unit.
In view of the upcoming enlarged unit capital from this placement, Axis REIT had declared on Tuesday an advance fourth interim distribution of 1.10 sen per unit for income earned from Oct 1 to Nov 12 this year. This distribution is payable on Nov 29.
In a statement on Wednesday, Axis REIT Managers Bhd chief executive officer and executive director Leong Kit May said: “The success of this private placement exercise, which is the largest thus far, underscores the strong market confidence in Axis REIT’s growth initiatives. It also aligns with our commitment to strengthening the balance sheet by reducing the financing ratio, and create more headroom for future portfolio growth.”
Maybank Investment Bank Bhd and CIMB Investment Bank Bhd were the placement agents for Axis REIT.
Axis REIT's portfolio consisted of 69 properties in the Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah as at Oct 11, 2024. The total space under management is 14.49 million sq ft, with total asset value of RM4.87 billion.
Trading of Axis REIT units was halted from 9.01am to 10.01am on Wednesday due to the announcement. It last closed at RM1.80 on Tuesday, giving it a market capitalisation of RM3.16 billion.