A wholly-owned subsidiary of Singapore Post has agreed to buy an office and warehouse complex in Malaysia for 34 million ringgit (S$13.1 million), the Singapore-listed postal services company said on Thursday.
Collective Developers, an indirect subsidiary of SingPost, will acquire Axis Plaza from Axis Real Estate Investment Trust (Reit), an Islamic office and industrial Reit listed on Bursa Malaysia.
The acquisition will support the expansion of SingPost's regional operations, the company said. It has paid a deposit of 10 per cent of the purchase price and will pay the balance with internal resources and bank borrowings when the deal is completed.
Axis Plaza, which is located in Temasya Industrial Park in Shah Alam, Selangor Darul Ehsan, was valued at 37 million ringgit by KGV International Property Consultants on Nov 26.
The freehold property has a land area of 54,896 sq ft and net lettable area of 117,244 sq ft, according to Axis Reit's website.
As of Aug 31 this year, Axis Plaza had six tenants - including Ricoh (Malaysia), CSE Automotive Technologies and Electrolux Commercial Products - and an average occupancy of 89.27 per cent.