Axis-REIT buys three Pulau Indah warehouses for RM61mil at a 6.2% yield, leases them straight back

Axis Real Estate Investment Trust (Axis-REIT) has agreed to buy three adjoining industrial parcels with warehouse facilities in Taman Perindustrian Pulau Indah, Klang, for RM61 million cash, immediately leasing the properties back to the seller.

The seller and new tenant is Megalift Sdn Bhd, a heavy transportation and logistics operator providing lifting and installation, erection, barging and freight-forwarding services. Megalift currently fully owner-occupies the site and will stay on as tenant under a fixed five-year leaseback at an initial monthly rental of RM316,826.90, subject to an agreed step-up.

What's actually being bought

The three warehouse blocks and ancillary buildings sit at Units 13, 11 and 9, Jalan Sungai Chandong 20/KS11, Taman Perindustrian Pulau Indah — a combined 29,101.59 sq m (7.19 acres) of land with 16,856.05 sq m (about 181,436 sq ft) of gross floor and net lettable area. The facilities are only one to three years old.

Land is held under 99-year leasehold titles expiring 30 October 2116 — about 90 years remaining, which is comfortably long for an industrial hold of this kind. The RM61 million price was set against a valuation by CBRE WTW Valuation & Advisory Sdn Bhd, dated 20 August 2026, using the investment approach with the cost approach as a check.

The numbers that matter

At RM316,826.90 a month, the leaseback works out to RM3.80 million a year in rent — a gross initial yield of about 6.2% on the RM61 million purchase price. On the built area, the price comes to roughly RM336 per sq ft; on land alone, about RM195 per sq ft.

None of that is dramatic on its own. What makes it a useful reference point is the combination: a sub-3-year-old, fully-occupied logistics asset, on a 90-year leasehold runway, inside the Port Klang industrial belt, priced by an independent valuer at just over 6% yield. If you're pricing an industrial sale-and-leaseback anywhere near Port Klang, this is a clean, dated comparable.

Why the location does the work

The site sits within reach of the Pulau Indah Highway, New Klang Valley Expressway, Shah Alam Expressway, South Klang Valley Expressway and the North-South Expressway, and close to North Port, West Port and South Port in Port Klang — Malaysia's busiest container gateway. For a business like Megalift's, whose work is heavy lifting, barging and freight-forwarding, proximity to three separate port terminals is not a convenience, it's the whole reason to be there.

Funding and process

Axis-REIT is funding the purchase entirely through existing bank facilities. Drawing the RM61 million will lift the REIT's financing ratio to 33.12% of audited total assets (as at 31 December 2025) — still well under the Securities Commission's 50% gearing ceiling for listed REITs.

Because the deal represents only 1.14% of Axis-REIT's assets under Bursa's related percentage-ratio test, it fell below the 5% threshold that would require a mandatory announcement — Axis-REIT disclosed it voluntarily. Completion, targeted for the first quarter of 2027, still needs sign-off from the Ministry of Economy's Equity Development Division, the relevant state authority, OCBC Bank (Malaysia) Bhd as chargee, and a Tenaga Nasional Bhd consent letter for one of the parcels' transfer.

The pattern behind this one deal

This is not an isolated purchase. Axis-REIT has been acquiring industrial and logistics assets steadily through 2026 — a Shah Alam industrial complex for RM38 million in May, a City-Link Express distribution centre for RM128 million in June, another industrial complex for RM113 million in July, and now this RM61 million Klang warehouse package. Read together, it's a REIT with real appetite for logistics real estate specifically around the Klang Valley's port and highway network, at a pace worth tracking if you deal in industrial assets in the same corridor.