KUALA LUMPUR (June 26): Axis Real Estate Investment Trust (KL:AXREIT) has announced that its trustee is buying a distribution centre located in Bandar Saujana Putra, Selangor from logistics and courier company City-Link Express (M) Sdn Bhd for RM128 million cash.
The acquisition is being undertaken by RHB Trustees Bhd, acting on behalf of Axis REIT, under a sale and purchase agreement signed on June 25, 2026, according to a filing on Thursday.
Axis REIT said the deal is a sale-and-leaseback transaction that will extend the tenant’s occupancy of the distribution centre for 15 years.
The nine- to 12-year-old property comprises a 355,023 square foot distribution centre built on two leasehold parcels spanning an estimated 46,776 sq ft metres in total.
The property is currently fully occupied by City-Link Express and serves as one of its logistics hubs. It will continue being used by the courier and logistics operator after completion of the acquisition.
Axis REIT said the acquisition is expected to be completed in the fourth quarter of 2026, whereby City-Link Express will remain its tenant under a long-term arrangement with rental adjustments scheduled over the lease period. The initial monthly rental is RM661,878.
“This proposed acquisition enables us to further strengthen our portfolio’s exposure in Malaysia’s growing logistics and industrial sector, which continues to benefit from the expansion of e-commerce activities, evolving consumer purchasing patterns, and increasing demand for efficient last-mile delivery and distribution networks,” said Axis REIT Managers Bhd chief executive officer Leong Kit May in a statement.
Axis REIT said it is funding the purchase through existing borrowings. The transaction is expected to increase its gearing level to 33.94% of total assets, while adding recurring income to the trust’s portfolio.
The acquisition is part of the group’s continued expansion into logistics and industrial assets, with the site positioned along key transport routes linking the Klang Valley, Port Klang and Kuala Lumpur International Airport (KLIA), which supports distribution and warehousing activity, said Axis REIT in the statement.
The land was appraised by independent firm Raine & Horne International Zaki + Partners Sdn in a valuation report dated May 11, 2026, giving the land an approximate value of RM129 million.
City-Link Express is owned equally by Datuk Tan Ah Ba and Datin Lee Hwee Leng, who each holds a 50% stake in the logistics company. They are also the direct shareholders of the vendor entity involved in the transaction.
City-Link Express CEO Ronald Tan noted the sale and leaseback deal represents another milestone for the group, enabling City-Link Express to release capital from a mature asset and reinvest it into areas such as technology, operational improvements, network growth and talent development.
Tan emphasised that the BSP Distribution Centre will continue to serve as the company’s operational headquarters, with no impact on customers, employees or daily activities.
Shares of Axis REIT were up by one sen or 0.5% to RM2.01 at Thursday’s market close. At its last price, the group has a market capitalisation of RM4.07 billion. Year to date, the counter has risen by 4.69%.