Axis REIT Acquires RM800 Million Industrial Facility in Penang, Secures Long-Term Leaseback from Ann Joo Steel

KUALA LUMPUR (Nov 6, 2025) — Axis Real Estate Investment Trust (Axis REIT) has announced the acquisition of a major industrial property in Seberang Perai Tengah, Penang, for RM800 million from Ann Joo Steel Bhd, marking one of the largest industrial real estate transactions of the year.

Following the acquisition, Ann Joo Steel will lease back the asset for a fixed term of eight years at a monthly rental of RM4.16 million, ensuring long-term income stability for the REIT. The lease agreement also includes a progressive surrender clause, under which Ann Joo will return portions of the facility to Axis REIT in the fifth, sixth, and seventh years, with rental adjustments to reflect the reduced occupancy.

Strengthening Axis REIT’s Industrial Portfolio

The asset comprises 135.53 acres of prime industrial land with a fully operational manufacturing facility, strategically located within the Prai Industrial Estate. The acquisition will be executed by RHB Trustees Bhd, acting as trustee for Axis REIT.

Axis REIT said the transaction aligns with its core strategy of expanding its industrial property portfolio through yield-accretive acquisitions backed by long-term leases.

“This acquisition is consistent with our objective of delivering stable income distributions while enhancing the trust’s net asset value over time. The strong recurring rental income from Ann Joo Steel will contribute positively to our earnings profile,” the REIT said in a statement.

This marks Axis REIT’s third acquisition in 2025, bringing its total investment value this year to RM930 million, compared to eight acquisitions worth RM719 million in 2024.

A Strategic Industrial Hub in Northern Malaysia

Located within Prai Industrial Estate, the newly acquired asset offers excellent connectivity through the Penang Bridge, the North-South Expressway, and its proximity to Penang Port — positioning it as a key logistics and export hub.

The acquisition further strengthens Axis REIT’s footprint in Malaysia’s industrial sector, complementing its portfolio of 68 properties across the Klang Valley, Johor, Penang, Pahang, Negeri Sembilan, and Kedah. As of Sept 30, 2025, the REIT reported an average portfolio occupancy rate of 97% and a total asset value of RM5.23 billion.

Industry analysts say the Penang purchase underscores Axis REIT’s growing role in Malaysia’s industrial and logistics real estate market, which has seen robust demand amid rising manufacturing and supply chain activity.

Outlook: Expanding Industrial Footprint Across Malaysia

Axis REIT’s continued focus on industrial and logistics assets mirrors broader investment trends in industrial land in Selangor, factories in Puchong, and industrial properties in the Subang area, where occupancy rates remain high due to sustained demand from logistics operators and technology-driven manufacturers.

At the same time, Axis REIT’s diversified exposure to commercial property in KL and office spaces in Bukit Jalil positions the trust to capture opportunities across Malaysia’s evolving business landscape.

Following the announcement, Axis REIT units closed two sen lower at RM2.16, valuing the trust at RM4.37 billion on Bursa Malaysia.