Malaysia’s Axis Reit buys Penang site for RM800 million, largest industrial property deal in 2025

[KUALA LUMPUR] Marking the largest industrial property transaction in Malaysia this year, Axis Reit acquired about 55 hectares of industrial land on the Penang mainland from steel product manufacturer Ann Joo Steel for RM800 million (S$250 million).

Located in Seberang Perai Tengah, the freehold plot and industrial facility will be leased back to Ann Joo post-acquisition for a fixed term of eight years at RM4.16 million per month, as disclosed in Axis Reit’s filing with Bursa Malaysia on Thursday (Nov 6).

In a separate statement, property consultancy firm Knight Frank Malaysia – the exclusively appointed agent for the transaction – described the asset as one of the most significant freehold industrial parcels to have been transacted in the northern region in recent years.

For comparison, Penang recorded 214 industrial property transactions worth a total of nearly RM866 million in the first half of 2025, according to the National Property Information Centre.

The RM800 million deal was also the largest in the country during the period, surpassing the previous top transaction – a 50-hectare industrial plot in Senai, Johor, which changed hands for RM402 million, according to the centre’s data.

According to Knight Frank Malaysia, both companies officially signed the deal on Nov 6 in Kuala Lumpur.

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Axis Reit, Malaysia’s first listed real estate investment trust, has been steadily expanding its industrial-focused portfolio. It had a market capitalisation of close to RM4.4 billion as at Nov 7.

Its latest acquisition – the company’s largest to date – aligns with its investment strategy to secure long-term income streams from leased logistics, manufacturing and industrial facilities. Axis-Reit currently manages 69 properties, including industrial properties, warehouses, offices and hypermarkets.

Ann Joo Steel, a wholly-owned subsidiary of Bursa-listed Ann Joo Resources, is one of the country’s largest integrated steel producers. Its Seberang Perai operations house Malaysia’s first modern blast furnace, alongside downstream steel processing and distribution activities.

Growing interest in Penang mainland

“This landmark deal underscores the growing strength and investor confidence in Penang’s industrial property market, particularly on the mainland,” said Mark Saw, senior executive director of Knight Frank Malaysia (Penang).

He highlighted the asset’s uniqueness, noting that large-scale freehold industrial land in Penang – especially land not under the jurisdiction of the Penang Development Corporation – is extremely limited.

Penang’s industrial market has remained one of Malaysia’s most resilient and active investment destinations, supported by sustained global demand in the semiconductor, electronics, and advanced manufacturing sectors.

Seberang Perai, in particular, has seen rising investor interest due to its available landbank, lower density and proximity to established supply chain ecosystems.

Allan Sim, senior executive director of land and industrial solutions at Knight Frank Malaysia, said Penang continues to attract both local and international investors seeking landbank opportunities, supported by strong demand from the semiconductor, electronics, and high-value manufacturing sectors.

“The transaction also reflects the rising land values and the growing scarcity of large industrial plots, underscoring Seberang Perai’s position as one of Malaysia’s most dynamic industrial growth corridors,” he said.

Sim added that with continued foreign investor confidence and strong industry fundamentals, there is sustained appetite for scalable, revenue-generating industrial assets.