Axis REIT and Ann Joo mutually terminate Penang industrial property acquisition on unsatisfactory due diligence findings

KUALA LUMPUR (March 27): Axis Real Estate Investment Trust (KL:AXREIT) said the acquisition of an RM800 million industry property in Seberang Perai Tengah from Ann Joo Resources Bhd’s (KL:ANNJOO) wholly owned subsidiary Ann Joo Steel Bhd has been terminated.

The mutual termination came after findings from Axis REIT’s due diligence exercise were deemed unsatisfactory, according to bourse filings.

However, the REIT did not disclose the details of the findings.

Accordingly, Axis REIT said it has informed Ann Joo Steel that the group will not be proceeding with the proposed acquisition of the property and both parties have mutually agreed to terminate the letter of offer.

Following the mutual termination, both parties will have no claims against each other arising from or in connection with the letter of offer.

The mutual termination is not expected to have any material financial impact on Axis REIT and Ann Joo and its subsidiaries.

The land acquisition was announced in November 2025. The assets comprise 135.53 acres of land with an industry facility built on-site.

The original arrangement would see Ann Joo Steel leasing back the property at RM4.16 million per month for a fixed term of eight years. Ann Joo Steel planned to surrender back sections of the space to Axis REIT in the fifth, sixth, and seventh anniversary of the lease, with the monthly rental adjusted according to the reduced occupancy.

On Thursday, Axis REIT units closed down one sen, or 0.52%, at RM1.93, giving the REIT — which primarily focuses on industrial assets — a market capitalisation of RM3.91 billion.

Ann Joo’s share price ended unchanged at 51.5 sen, translating into a market capitalisation of RM370 million.

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