KUALA LUMPUR (Aug 26): Axis Real Estate Investment Trust (KL:AXREIT) is acquiring three adjoining parcels of industrial land with warehouse facilities in Taman Perindustrian Pulau Indah, Klang, for RM61 million.

In a Bursa Malaysia filing on Wednesday, the REIT said its trustee RHB Trustees Bhd had entered into a sale and purchase agreement with Megalift Sdn Bhd, the owner of the properties, for the acquisition.

The 99-year leasehold land, which has a total area of 29,101.59 sq m, houses three blocks of warehouses and ancillary buildings with a gross floor and net lettable area of about 16,856 sq m. The property is currently fully owner-occupied by Megalift and used for warehousing operations.

Upon completion of the acquisition, Megalift will lease back the property under a five-year leaseback arrangement, providing Axis REIT with an initial monthly rental of RM316,826.90, subject to agreed rental increases during the lease period.

In a separate statement, Axis REIT Managers Bhd chief executive officer and executive director Leong Kit May said the proposed acquisition is in line with Axis REIT’s strategy of expanding its portfolio through industrial assets in prominent locations.

“The property is located within Taman Perindustrian Pulau Indah, an important industrial hub within Port Klang with access to major highways,” she said.

“Its close proximity to Northport, Westport and Southport, key shipping terminals serving Port Klang, further supports its strategic role in supply chain and distribution operations.”

The acquisition will be funded through Axis REIT’s existing bank facilities and is expected to be completed by the first quarter of 2027.

Axis REIT units closed seven sen or 3.7% lower at RM1.85 on Wednesday, valuing the industrial-focused REIT at RM3.75 billion.