Axis Real Estate Investment Trust's (Axis-REIT) trustee, RHB Trustees Bhd, has entered into a Sale and Purchase Agreement (SPA) with Basic Eight (M) Sdn Bhd for the proposed disposal of The Annex for a total cash consideration of RM24.2 million.

Situated in Seksyen 19, Petaling Jaya, The Annex comprises a single-storey warehouse with an annexed double-storey office, spanning a land area of approximately 66,182 sq ft. Axis-REIT originally acquired the asset in October 2012 for RM12 million, and the sale price of RM24.2 million represents a strategic divestment opportunity that aligns with Axis-REIT's portfolio optimisation strategy.

The disposal is expected to generate a net gain of RM9 million, which Axis-REIT plans to fully distribute to its unitholders as tax-exempt income, translating to an additional income distribution of 0.44 sen per unit. Additionally, the remaining proceeds will be used to reduce gearing, enhancing Axis-REIT's financial flexibility for future acquisitions or developments. The transaction is also expected to reduce Axis-REIT's financing ratio to 34.03% of audited total assets as at Dec 31, 2023.

The disposal price is based on an independent valuation of RM23 million by Raine & Horne International Zaki + Partners Sdn Bhd, as stated in its valuation report dated Jan 20, 2025. The disposal is not subject to unitholders' approval and is expected to be completed within the first half of 2025.