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- This marks Axis REIT’s third acquisition of the year, bringing its total investments this year to RM930 million, compared with eight acquisitions worth RM719 million in 2024.
KUALA LUMPUR (Nov 6): Axis Real Estate Investment Trust (KL:AXREIT) is acquiring an industrial property in Seberang Perai Tengah for RM800 million from Ann Joo Steel Bhd, to whom it is leasing back the asset post-acquisition.
The asset comprises 135.53 acres of land with an industrial facility built on-site. According to Axis REIT’s filing with Bursa Malaysia on Thursday, the purchase will be executed by RHB Trustees Bhd, the trustee for Axis REIT.
Ann Joo Steel will lease back the property at RM4.16 million per month for a fixed term of eight years. Ann Joo Steel plans to surrender back sections of the space to Axis REIT in the fifth, sixth, and seventh anniversary of the lease, with the monthly rental adjusted according to the reduced occupancy.
This marks Axis REIT’s third acquisition of the year, bringing its total investments this year to RM930 million, compared with eight acquisitions worth RM719 million in 2024.
Axis REIT said the planned acquisition is consistent with its investment objectives and growth strategy of delivering stable income distributions and enhancing net asset value per unit. The property is earnings-accretive, supported by strong recurring rental income, and will strengthen its portfolio over the long term, it added.
The property is located within the Prai Industrial Estate. According to the REIT, it offers strategic connectivity via the Penang Bridge to Penang Island, major roadways through the North-South Expressway, and is close to Penang Port.
As at Sept 30 this year, the trust has a portfolio of 68 properties—spread across the Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah—with an average occupancy rate of 97% and a total asset value of RM5.23 billion.
Axis REIT units closed down two sen, or 0.9%, at RM2.16, giving the REIT—which primarily focuses on industrial assets—a market capitalisation of RM4.37 billion.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
