In a strategic move to capitalize on Malaysia’s rapidly expanding logistics sector, Axis Real Estate Investment Trust has announced the acquisition of a prime industrial property in Port Klang valued at RM50 million. This investment comes at a pivotal moment when the nation’s e-commerce transactions have surged dramatically, creating unprecedented demand for modern warehousing and distribution facilities. The transaction demonstrates the trust’s forward-looking approach to portfolio expansion amid favorable market conditions.
The newly acquired 3.64-hectare freehold property occupies a strategic position within Bandar Sultan Suleiman’s industrial zone, benefiting from exceptional connectivity to major transportation networks. This location advantage positions the asset to attract strong tenant interest from companies operating in e-commerce, manufacturing, and logistics sectors. Although the property currently stands without occupants, market response has been positive, with Axis-REIT’s unit price experiencing an uptick following the acquisition announcement, signaling investor confidence in management’s ability to secure tenancy.
Malaysia’s industrial real estate market continues to gain momentum from multiple growth drivers, including the country’s participation in international trade agreements and rising foreign investment. The nation’s e-commerce merchandise value recorded impressive growth, reaching RM139.55 billion in 2024, directly fueling demand for sophisticated logistics infrastructure. These macroeconomic factors create an ideal environment for industrial property investments, particularly in strategically located hubs like Port Klang with their direct access to seaports and distribution channels.
Axis-REIT’s current portfolio demonstrates remarkable stability, with 68 shariah-compliant properties across key Malaysian regions maintaining a 97 percent occupancy rate. The trust’s financial performance remains robust, with total trust income reaching RM180.1 million for the first half of 2025, representing an 18.4 percent year-over-year increase. This acquisition, while representing approximately one percent of the trust’s total portfolio value, aligns perfectly with its strategy of securing prime industrial assets in high-demand locations.
Looking ahead, Axis-REIT maintains significant financial flexibility through its recently established RM300 million senior sukuk program, providing substantial capacity for future strategic acquisitions. Management anticipates continued resilience in full-year performance, supported by stable rental income and a disciplined approach to portfolio growth. This latest investment not only strengthens the trust’s position within Malaysia’s logistics landscape but also positions it to benefit from the structural shifts transforming the nation’s industrial property sector.