Axis REIT to develop RM130m distribution centre in Shah Alam

KUALA LUMPUR (Jan 21): Axis Real Estate Investment Trust (REIT) will be developing a 620,096 sq ft distribution centre at a cost of RM130 million in Shah Alam, Selangor, which will be leased to Shopee's logistics arm, Shopee Express Malaysia Sdn Bhd, for 15 years upon completion.

In a bourse filing on Thursday (Jan 20), Axis REIT said it has entered into a 15-year lease agreement with Shopee Express. The proposed development is expected to commence in the first quarter of 2022 and to be completed for handover to Shopee Express by Aug 31, 2023.

The proposed development involves Axis REIT's existing property called Bukit Raja Distribution Centre 2, which it acquired in March last year.

"The development cost excluding the land is approximately RM130 million or 3.86% of Axis REIT's total asset value of RM3.36 billion based on its latest audited financial statements for the year ended Dec 31, 2020 (FY20) and is below the 15% threshold imposed under the Securities Commission Malaysia's REIT guidelines," said the REIT.

Axis REIT units closed two sen or 1.1% higher at RM1.84, valuing the REIT at RM2.66 billion.

Get the latest news @

Subscribe to our Telegram channel for the latest stories and updates 

Click here for more property stories

Looking for properties to buy or rent? With >150,000 exclusive listings, including undervalued properties, from vetted Pro Agents, you can now easily find the right property on Malaysia's leading property portal EdgeProp! You can also get free past transacted data and use our proprietary Edge Reference Price tool, to make an informed purchase.
  1. Axis REIT to acquire industrial facility in Johor for RM16.3m
  2. Axis REIT 4Q net property income up 10.4%, declares 2.41 sen DPU
  3. Xin Hwa sells Pasir Gudang warehouse property to Axis REIT for RM75m in leaseback deal