Axis Real Estate Investment Trust is adding another industrial asset to its northern Malaysia portfolio with a proposed RM113 million cash acquisition in Kedah. EdgeProp reported that RHB Trustees Bhd, as trustee for Axis REIT, has signed a sale and purchase agreement with WH Union Development Sdn Bhd for the Padang Meha property.
The asset and pricing
The property is a fully occupied freehold industrial complex at Lot Nos 8 and 9, Kawasan Industri Padang Meha, 09400 Padang Meha, Kedah. EdgeProp reported a land area of about 13.28 acres and a net lettable area of 340,047 sq ft across six industrial premises. Based on 13.28 acres, the land area is about 578,477 sq ft, which puts the RM113 million consideration at roughly RM195 psf on land area.
The income angle is clearer than in many bare-land deals. The vendor will remain as master lessee under a six-year leaseback arrangement at an initial monthly rental of RM620,452.80, with a rental step-up during the second three-year term. On the stated net lettable area, the initial rent is about RM1.82 psf per month, calculated as RM620,452.80 divided by 340,047 sq ft.
Why Kulim matters
Padang Meha sits in the wider Kulim industrial orbit, with road access towards Kulim town, Kulim Hi-Tech Park, the Butterworth-Kulim Expressway, North Butterworth Container Terminal and Penang Bridge. For readers watching the northern logistics belt, Rummah's Kedah property for sale page is a residential-market lens, while this REIT deal points to continuing institutional demand for income-producing industrial assets.
Completion is targeted for the first quarter of 2027 and remains subject to the vendor obtaining the Certificate of Completion and Compliance for a newly erected single-storey factory forming part of the property. EdgeProp said the purchase will be funded through existing bank facilities and is expected to lift Axis REIT's financing ratio to about 33.8% of audited total assets as at 31 December 2025.
Takeaways
- Axis REIT is paying RM113 million for a fully occupied freehold industrial complex.
- The implied land price is about RM195 psf, using 13.28 acres as the land base.
- The initial leaseback rent equates to about RM1.82 psf per month on net lettable area.
The deal fits Axis REIT's stated industrial and logistics strategy. It is not a consumer-facing launch, but it is a useful signal of how listed property capital is still being deployed around Malaysia's manufacturing corridors.
