KUALA LUMPUR (Dec 8): Axis Real Estate Investment Trust (Axis-REIT) has proposed to acquire a two-storey shopping mall in Temerloh, Pahang, for RM25.75 million cash.

The REIT said the acquisition of Temerloh Mall in Taman Damai, from Amal Mewah Development Sdn Bhd, will be funded by its existing bank financing.

The freehold property with a net lettable area of 93,854 sq ft (square feet) will be leased to TF Value-Mart Sdn Bhd, the fund said in a bourse filing on Friday.

It added that the acquisition of the property is in line with the fund’s growth strategy to provide unitholders with a stable income distribution and to achieve growth in its net asset value by acquiring high quality, earnings accretive properties with strong recurring rental income.

“The proposed acquisition of the property will be accretive to Axis-REIT’s distributable income and adds to the portfolio of properties that will benefit the fund in the long term,” said Axis-REIT.

The acquisition is expected to be completed by the first quarter of next year, and contribute positively to the earnings of the fund for the financial year ending Dec 31, 2024, the fund said.

Axis-REIT’s units closed unchanged at RM1.78 on Friday, giving the fund a market capitalisation of RM3.20 billion.