How will Axis-REIT utilise the RM162 million proceeds from the sale?

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Axis-REIT to Utilise RM162 Million Sale Proceeds for Debt Repayment

Axis Real Estate Investment Trust (Axis-REIT) plans to use the entire RM162 million in proceeds from its property disposal in Nusajaya, Johor, to repay existing financings. This strategic financial move is anticipated to be completed within 12 months following the finalisation of the sale.
Repayment of Existing Financings

The RM162 million cash consideration received from the sale of the industrial property will be allocated towards settling outstanding debt obligations. This action is a direct application of the funds generated from the disposal.
Utilisation Timeline

Axis-REIT has indicated that the utilisation of these proceeds for debt repayment is expected to occur within a 12-month timeframe. This period commences from the date the sale transaction is officially completed.
Impact on Financing Ratio

The repayment of existing financings using the sale proceeds is projected to reduce Axis-REIT’s financing ratio. Specifically, it is expected to lower the ratio to 31.94 per cent of its audited total assets as of December 31, 2023.

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How will Axis-REIT utilise the RM162 million proceeds from the sale?

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