Axis-REIT eyes RM800mil industrial property in Penang

By NST in November 6, 2025 – Reading time 2 minute

KUALA LUMPUR: Axis REIT Managers Bhd (ARMB), on behalf of Axis Real Estate Investment Trust (Axis-REIT), has announced its largest acquisition to date, proposing to acquire an industrial property in Penang from Ann Joo Steel Bhd (AJSB) for RM800 million in cash.

The acquisition, once completed, is set to significantly strengthen Axis-REIT’s portfolio and presence in Penang’s industrial sector.

According to ARMB, the transaction is subject to the terms and conditions of a Sale and Purchase Agreement (SPA), which is currently being finalised.

Under the proposed arrangement, AJSB, a wholly-owned subsidiary of Ann Joo Resources Bhd (AJRB), will lease the property from Axis-REIT for eight years. The initial monthly rental is set at RM4.16 million, with rental adjustments scheduled following the surrender of portions of the space at the end of years 5, 6, and 7, in accordance with the SPA.

The industrial property is located on freehold land within a master plot that will be subdivided into about 55 hectares.

Strategically positioned in the Prai Industrial Estate, Penang, the property benefits from excellent connectivity to Penang Island, major highways including the North–South Expressway, and the nearby Penang Port – factors that enhance its appeal as a key industrial and logistics hub.

Leong Kit May, chief executive officer and executive director of ARMB, said, “This acquisition marks an important milestone for Axis-REIT and underscores our focused strategy of acquiring strategic assets in prime locations.”

He said Prai Industrial Estate stands as one of Penang’s most established industrial hubs, hosting a diverse range of economic activities.

“This strategically located industrial hub, with excellent connectivity to the port, railway system and major highways, makes this a good addition to our portfolio and increases our footprint in Penang,” Leong said.

The deal not only expands Axis-REIT’s industrial property holdings but also reinforces its long-term strategy of securing assets that generate stable, recurring income through strategic tenancy agreements with established corporate tenants like AJSB.

Axis REIT is Malaysia’s first real estate investment trust. It has a diverse portfolio of 68 properties across the Klang Valley, Johor, Penang, Pahang, Negeri Sembilan and Kedah as at Sept 30, 2025.

The occupancy rate of Axis REIT’s portfolio stood at 97 per cent with a weighted average lease expiry period of 4.5 years, based on rental. The total space under management is 15.11 million square feet and total asset value of RM5.23 billion.

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