Axis Real Estate Investment Trust (Axis-REIT) is acquiring a fully occupied distribution centre in Bandar Saujana Putra, Selangor, from City-Link Express (M) Sdn Bhd for RM128 million in cash.
In a filing, Axis-REIT’s trustee RHB Trustees Bhd said it has entered into a sale and purchase agreement for the property, which consists of a distribution centre and ancillary buildings located on two contiguous leasehold commercial land parcels measuring a total of approximately 46,776 sq metres.
The facility has a total lettable area of around 355,023 sq ft and currently serves as one of City-Link Express’ key distribution hubs, supporting its logistics and delivery operations.
Axis-REIT said the acquisition is in line with its strategy to expand its portfolio of income-generating logistics assets, particularly in strategic locations within the Klang Valley.
The transaction is expected to be completed in the fourth quarter of 2026. Upon completion, City-Link Express will enter into a 15-year leaseback arrangement, ensuring continued occupation of the facility while providing stable and long-term rental income for the REIT.
Under the lease agreement, Axis-REIT will receive an initial monthly rental income of RM661,878, with provisions for periodic rental escalations throughout the lease tenure, enhancing the asset’s long-term income profile.
Axis-REIT said the acquisition will be funded via existing bank borrowings and is expected to increase its gearing level to approximately 33.94% of audited total assets as at Dec 31, 2025.
The property is strategically positioned near several major highways, including the ELITE, SKVE, West Coast Expressway (WCE) and KESAS, providing strong connectivity to key logistics and industrial corridors across the Klang Valley and supporting efficient distribution operations.
