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Friday, January 23, 2009

Axis REIT to spend on enhancing properties

AXIS REIT Managers Bhd will invest RM8 million for property enhancement this year, its chief executive officer and executive director, George Stewart LaBrooy said today.

By taking advantage of the economic slowdown, the exercise would be cheaper, as the cost of construction materials had fallen, he said.

LaBrooy said RM6 million would be used to refurbish the Nestle House in Petaling Jaya, which the company owns.

“This will be our major refurbishment project and it will start in November,” he told a media briefing today.
He also said that the company was looking to acquire at least one property this year but nothing has been finalised.

Axis REIT, the manager of Axis Real Estate Investment Trust, owns 19 properties.

On the company’s performance, he said Axis REIT managed to record an income before taxation of RM38.97 million, an increase of 39.2 per cent from the preceding year.

Gross revenue for the year rose to RM63.442 million from RM46.827 million the previous year.

On the property outlook, he said, the industry is expected to remain flat this year, as a result of the gloomy global economic outlook.

He said that demand for high-end condominiums would be most affected, as buyers were looking for cheaper alternatives.

LaBrooy also stated that the rental rates of commercial offices were retreating.

By Bernama

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