Axis-REIT Acquires Industrial Complex in Shah Alam for RM38 Million

PETALING JAYA, May 14 — Axis Real Estate Investment Trust (Axis-REIT) has announced the acquisition of an industrial complex located in Seksyen 16, Shah Alam, Selangor for RM38 million from Rubicon Assets Sdn Bhd (RASB).

According to the company’s Bursa Malaysia announcement, the sale and purchase agreement (SPA) was signed between RHB Trustees Berhad, acting as trustee for Axis-REIT, and RASB. The acquisition will be fully financed through Axis-REIT’s existing credit facilities.

Details of the Property

The property is located at No 2, Jalan Halba 16/16, Seksyen 16, Shah Alam. It consists of a single-storey detached factory combined with a double-storey office building and a four-storey factory and storage block, along with supporting facilities.

Key features of the property include:

• 99-year leasehold tenure expiring on July 20, 2094
• Land area of approximately 3.03 acres
• Gross floor area of around 125,821 square feet
• Net lettable area of approximately 120,177 square feet
• Buildings aged between 31 and 36 years
• Full occupancy rate of 100%

The industrial complex is strategically located with access to major roads including Persiaran Selangor, the Federal Highway, and the North Klang Valley Expressway, making it suitable for logistics and industrial activities.

However, the property is currently subject to a Registrar Caveat lodged by Jabatan Insolvensi Malaysia due to insolvency proceedings involving a previous owner. The removal of the caveat by the vendor is one of the conditions required before the transaction can be completed.

Existing Tenants and Rental Income

The property is fully occupied by three tenants whose tenancy agreements will be transferred to Axis-REIT after the acquisition is completed.

The tenants are:

1. OCK Telco Infra Sdn Bhd — operating a telecommunications tower on the rooftop
2. Tamura Electronics (M) Sdn Bhd — using the premises for office and storage purposes
3. Seng Hup Lightings & Decor Sdn Bhd — using the building for storage of lighting products

The combined monthly rental income from these tenants amounts to RM210,476.75.

Related Party Transaction

The acquisition has been classified as a related party transaction because the vendor, RASB, is closely linked to directors of Axis REIT Managers Bhd (ARMB).

RASB is more than 99% owned by Stephen Tew, who serves as the non-independent non-executive deputy chairman of ARMB. His alternate director, Maxine Teoh Sui Vern, also holds a small ownership stake in the company.

Due to this relationship, the interested directors abstained from discussions and voting related to the transaction. The audit committee reviewed the acquisition and concluded that the deal is fair, reasonable, and not harmful to minority unitholders.

Valuation and Financial Impact

The RM38 million purchase price was supported by an independent valuation conducted by First Pacific Valuers Property Consultants Sdn Bhd on March 27, 2026.

The property had a net book value of RM27.2 million as of Dec 31, 2024, while its original acquisition cost in 2014 was RM15.8 million.

The payment structure includes:

• A 2% earnest deposit of RM760,000
• An additional 8% deposit of RM3.04 million
• The remaining RM34.2 million payable within 45 days after the agreement becomes unconditional

Axis-REIT stated that the acquisition is expected to contribute positively to its distributable income for the financial year ending Dec 31, 2026. Completion of the acquisition is targeted for the second half of 2026.

Following the acquisition, Axis-REIT’s financing ratio is expected to increase to 32.84%, which remains below the 50% gearing limit set by the Securities Commission Malaysia.