Axis Real Estate Investment Trust (Axis-REIT) is garnering positive attention from analysts following its proposal to acquire an industrial property in Seberang Perai, Penang, from Ann Joo Resources Bhd for RM800 million.
The proposed acquisition, if completed, would further strengthen Axis-REIT’s portfolio, which is already diversified across industrial, retail, and office assets in Malaysia. Market watchers noted that the addition of a high-value industrial property aligns with the trust’s strategy to expand its footprint in the industrial sector, which has been resilient amid ongoing demand for logistics and manufacturing spaces.
Analysts said the acquisition could potentially enhance Axis-REIT’s long-term income stream and asset base. “This is a strategic move that reinforces Axis-REIT’s position in the industrial property market, especially in a key logistics hub like Penang,” one analyst said.
The trust’s management has indicated that the acquisition will be funded through a combination of debt and internal resources, ensuring minimal impact on its gearing levels. Axis-REIT’s portfolio currently has a healthy occupancy rate, and the inclusion of the new property is expected to contribute positively to future distributable income.
Investors responded favorably to the announcement, with Axis-REIT shares experiencing an uptick in early trading. The proposal also highlights the ongoing appetite for prime industrial assets in Malaysia, particularly in strategic locations such as Seberang Perai, which continues to attract local and foreign investment.
Axis-REIT’s management has stated that the acquisition remains subject to regulatory approvals and due diligence, with the trust committed to completing the transaction in a timely manner.
