Axis REIT completes RM38m Shah Alam buy at 6.65% yield

Axis REIT completed its purchase of a 3.03-acre industrial complex at No. 2, Jalan Halba 16/16, Section 16, Shah Alam, on 30 September 2026, paying RM38 million cash, the same as its valuation. The three tenants pay RM210,476.75 a month, a starting yield of about 6.65%. It is a related-party deal: the seller, Rubicon Assets Sdn Bhd, is owned by Axis co-founder Stephen Tew (more than 99%) and his daughter Maxine Teoh. Tew was deputy chairman of the REIT's manager when the agreement was signed on 13 May, and became chairman on 6 July.

The property

• Title: HS(D) 98505, PT 719, Seksyen 16, Bandar Shah Alam, Petaling; 99-year lease to 20 July 2094, about 68 years left
• Land: 12,261 sq m (131,976 sq ft), a corner lot on Jalan Halba 16/16, with Persiaran Selangor to the east and the Federal Highway behind it
• Buildings: a single-storey detached factory joined to a two-storey office block, plus a four-storey factory and store block, 31 to 36 years old; 125,821 sq ft of gross floor area and 120,177 sq ft lettable
• Valuation: RM38 million by First Pacific Valuers (27 March 2026), using the investment method with the cost method as a check

The tenants

• Tamura Electronics (M) Sdn Bhd: 78,175 sq ft of offices and storage for electronic and electrical components, three years from 1 January 2026
• Seng Hup Lightings & Decor Sdn Bhd: 42,002 sq ft for storing lighting products, three years from 1 January 2026. Stephen Tew and Maxine Teoh each own 50% of it
• OCK Telco Infra Sdn Bhd: a telecommunications tower on part of the roof, three years from 1 June 2023

The deal

• Funding: about RM38 million drawn from Axis REIT's existing bank lines, taking gearing to 32.84% of audited total assets at end-2025, against a 50% limit
• Approvals: the trustee (5 February 2026), the Shariah adviser (27 March 2026) and the state's consent to the transfer; no unitholder vote was needed. The seller also had to have a caveat removed that the Insolvency Department lodged in 2016 over a previous owner's insolvency
• Board: Stephen Tew and Maxine Teoh abstained; the audit committee said the terms were fair, reasonable and on normal commercial terms
• Seller's history: Rubicon bought the property for RM15.8 million on 22 January 2014 and carried it at RM27.2 million at end-2024

The numbers

• Yield: RM210,476.75 × 12 ≈ RM2.53 million a year ÷ RM38 million ≈ 6.65%
• Per sq ft: about RM316 psf of lettable area, or RM288 psf of land
• Rent: about RM1.75 psf a month on the lettable area, counting the roof tower's rent in the total
• For the seller: 2.4 times its 2014 cost, about 7.2% a year over 12.7 years
• Axis REIT's other 2026 purchases: Pulau Indah warehouses (August) at 6.23% and RM336 psf; Padang Meha, Kulim (July) at 6.59% and RM332 psf; the City-Link distribution centre in Bandar Saujana Putra (June) at 6.21% and RM361 psf

Every Axis REIT property and deal is listed in our Axis REIT profile.

Cover map: EPIQ, via EdgeProp.