KUALA LUMPUR: Axis Real Estate Investment Trust
(Axis-REIT) has inked a conditional share and purchase agreement with Banyan Estate Malaysia Sdn Bhd for the proposed acquisition of a double-storey factory annexed with a double-storey office building and other ancillary buildings on a tract of land in Senai in Kulai, Johor, for RM34.61mil.
In a filing with Bursa Malaysia, the trust noted the plot of land measuring 0.8094ha is designated for medium industrial use with a 60-year leasehold expiring on Dec 2, 2069.
The property is currently leased to FCI Connectors Malaysia Sdn Bhd – an existing client of Axis-REIT at FCI Senai that manufactures connectors and connectors-based components – for a fixed period of five years with an option to renew for another five years. The agreed monthly rental is an initial amount of RM20,653.40, or RM1.80 per sq ft of the lettable area of about 115,363 sq ft.
According to Axis-REIT, the proposed acquisition will be funded by its existing bank financing.
Axis REIT Managers Bhd chief executive officer and executive director, Leong Kit May said, “Senai has established itself as a key logistics and industrial hub, supported by strong connectivity via Senai International Airport, the Senai Airport interchange along the Second Link Highway, and the Senai interchange of the Senai–Desaru Expressway.
“As part of the Johor–Singapore Special Economic Zone, Senai offers businesses a cost-efficient operating environment that complements Singapore’s high-value economic activities.
“We believe this acquisition supports our investment strategy by adding a high-quality, income-generating asset with strong and recurring rental returns, and will enhance Axis-REIT’s long-term performance.”
Axis-REIT has a diverse portfolio of 69 properties strategically located in the Klang Valley, Johor, Penang, Pahang, Negri Sembilan and Kedah.
The trust has a solid industrial space portfolio.
As at Sept 30, 2025, the occupancy rate of Axis-REIT’s portfolio stood at 97% with a weighted average lease expiry period of 4.5 years, based on rental.
Its total space under management is 15.11 million sq ft and total asset value of RM5.23bil.
