Axis Real Estate Investment Trust (Axis-REIT) has strengthened its logistics portfolio with the acquisition of a RM128 million fully occupied distribution centre in Bandar Saujana Putra, Selangor, in a sale-and-leaseback deal with City-Link Express (M) Sdn Bhd.
The trustee, RHB Trustees Bhd, has entered into a sale and purchase agreement to acquire the asset, which is fully leased and operates as one of City-Link Express’s key distribution hubs.
The property comprises a distribution centre and ancillary buildings built on two contiguous leasehold commercial land parcels measuring approximately 46,776 sq m, with a total lettable area of about 355,023 sq ft.
Upon completion, targeted for the fourth quarter of 2026, City-Link Express will lease back the facility under a 15-year lease agreement, generating an initial monthly rental income of RM661,878, with agreed rental step-ups throughout the tenure.
Axis-REIT said the acquisition will be funded via existing bank facilities and is expected to increase its gearing ratio to approximately 33.94% of audited total assets as at Dec 31, 2025.
Axis REIT Managers Bhd Chief Executive Officer and Executive Director Leong Kit May said the acquisition enhances the trust’s exposure to Malaysia’s growing logistics and industrial segment, which continues to benefit from rising e-commerce activity, shifting consumer behaviour and demand for efficient last-mile delivery networks.
She added that the asset’s strategic location near major highways including the ELITE Highway, SKVE, WCE and KESAS supports its role as a key logistics hub for a leading courier operator, while the long-term leaseback structure provides stable and predictable income visibility for unitholders.
City-Link Express Chief Executive Officer Ronald Tan said the transaction allows the company to unlock value from a mature asset while redeploying capital into technology upgrades, operational enhancements and network expansion.
He added that the BSP Distribution Centre will continue to function as the company’s operational headquarters, with no disruption to customers or day-to-day operations.
