Axis Real Estate Investment Trust is acquiring an industrial property in Shah Alam for RM38 million in cash in a related-party transaction.
In a Bursa Malaysia filing on Wednesday, trustee RHB Trustees Bhd said it had entered into a sale and purchase agreement with Rubicon Assets Sdn Bhd for the leasehold property.
The deal is classified as a related-party transaction as Rubicon Assets director and major shareholder Stephen Tew Peng Hwee @ Teoh Peng Hwee is also the non-independent non-executive deputy chairman of Axis REIT Managers Bhd.
The property comprises a single-storey detached factory with an integrated double-storey office block and a four-storey factory and storage block, with a net lettable area of about 120,177 sq ft.
Axis REIT said the asset is fully leased to three tenants — OCK Telco Infra Sdn Bhd, Tamura Electronics (M) Sdn Bhd and Seng Hup Lightings & Decor Sdn Bhd — generating combined monthly rental income of RM210,476.75.
The REIT said the acquisition is expected to be earnings-accretive, supported by stable recurring rental income, and will strengthen long-term portfolio returns.
The purchase will be funded via existing bank financing, with Axis REIT’s gearing expected to rise to 32.84%, still within the regulatory limit of 50%.
The acquisition is expected to be completed in the second half of 2026.
Axis REIT units closed three sen higher at RM2.01 on Wednesday, giving the REIT a market capitalisation of RM4.07 billion.
