PETALING JAYA: Axis Real Estate Investment Trust’s (Axis-REIT) trustee, RHB Trustees Bhd, has entered into a sale and purchase agreement with City-Link Express (M) Sdn Bhd to acquire a fully occupied distribution centre located in Bandar Saujana Putra, Selangor, for RM128.0 million.
The distribution centre, together with ancillary buildings, is built upon two contiguous parcels of leasehold commercial land, measuring approximately 46,776.11 square metres.
The property, with a lettable area of approximately 355,023 square feet, is fully occupied by CityLink Express and serves as one of its distribution hubs.
Upon completion of the acquisition, targeted for the fourth quarter of 2026, City-Link Express will lease back the property under a 15-year leaseback arrangement, providing Axis-REIT with a starting monthly rental income of RM661,878.00, subject to agreed step-ups throughout the lease term.
The acquisition will be funded through Axis-REIT’s existing bank facilities and is expected to increase its financing ratio to approximately 33.94% of audited total assets as at Dec 31, 2025.
Commenting on the acquisition, Axis REIT Managers Bhd CEO and executive director Leong Kit May said this acquisition enables the company to further strengthen its portfolio’s exposure in Malaysia’s growing logistics and industrial sector, which continues to benefit from the expansion of e-commerce activities, evolving consumer purchasing patterns, and increasing demand for efficient last-mile delivery and distribution networks.
“The property’s proximity to major highways like North South Expressway Central Link (ELITE Highway), South Klang Valley Expressway (SKVE), West Coast Expressway (WCE) and Shah Alam Expressway (KESAS) allows the property to serve as a key logistics hub for a well-established courier and logistics operator.
“Importantly, the 15-year leaseback arrangement provides strong income visibility and stability, supporting our objective of delivering sustainable and recurring returns to unitholders while further enhancing the resilience of our portfolio,” he said.
City-Link Express CEO Ronald Tan said since the development of the company’s Bandar Saujana Putra distribution centre in 2009, City-Link Express has undergone a significant transformation in scale, network capability, technology and operational reach.
“This transaction marks another important milestone in that journey. The sale and leaseback allows us to unlock capital from a mature infrastructure asset and redeploy it into areas that will drive the next phase of City-Link Express’s growth, including technology, operational excellence, network enhancement and talent development.
“Importantly, the Bandar Saujana Putra distribution centre remains our operational headquarters and the transaction does not affect our customers, employees or day-to-day operations.
“What it does is strengthen our balance sheet, improve our strategic flexibility and provide a stronger platform for future investments and growth opportunities,” he said.
