Bursa Malaysia Stock Information

The Federal Reserve, cut a key interest rate by a quarter-point on Wednesday, but signaled that may be all the rate relief the economy needs right now.

The central bank lowered the federal funds rate to 4.5 percent, as had been expected. But while financial markets had hoped for a clear signal that further rate cuts could be forthcoming, the central bank instead signaled that the September and October rate cuts may be it.

Oil futures soared again Wednesday to a new record near $95 a barrel after the government reported another unexpected drop in crude oil inventories and the Federal Reserve cut interest rates by a quarter point.

Asian markets expected to rise after the US rate cuts announcement and strong performance in Wall Street.

The Star, 18, 2007

By SHANNEN WONG

PETALING JAYA: Axis REIT Managers Bhd’s proposed acquisition of a five-storey building for RM37mil will boost its asset size to RM618mil, bringing it closer to its target size of RM800mil by year’s end, Aseambankers Malaysia Bhd said.

In an announcement on Friday, Axis REIT proposed the buy of its 16th property, an office and factory in Petaling Jaya, from Wah Seong Industrial Holdings Sdn Bhd.

“The acquisition price appears fair at RM353 per sq ft with rising capital values,” said Aseambankers analyst C.T. Ong in a report. “The price compares well with recent office property transactions in the vicinity, like Nestle House at RM375 per sq ft and Menara Merais at RM358 per sq ft.”

The acquisition was expected to record a net property income of about RM2.6mil a year, or a net property yield of about 7%, he said, noting that it would increase Axis REIT’s net profit by 3.3% for the financial year ending Dec 31, 2008.

The acquisition, expected to be completed by February next year, was anticipated to generate income of some RM960,000 a year for the trust, Ong said.

Read more from The Star website.

See Axis Real Estate Investment Trust

The Star, 18, 2007

KUALA LUMPUR: Atrium Real Estate Investment Trust (REIT) has acquired an industrial building at Senai Industrial Park, Johor for RM12.5mil from Yong Jin Development Sdn Bhd.

In a filing with Bursa Malaysia, Atrium REIT said the property would be leased to Flextronics Technology (Malaysia) Sdn Bhd for five years. The tenancy which expires at the end of 2011 has the option for further five years. It said the rental income would provide Atrium REIT with an annual gross yield of about 9.6%.

The acquisition comprises 2.8 ha leasehold land expiring in 2054 and housing an electronic factory with a net lettable area of 125,173 sq ft. – Bernama

See Atrium Real Estate Investment Trust