Penang’s Industrial Market Strengthened by Major RM800M Deal

Penang’s Industrial Market Strengthened by Major RM800M Deal

Highlights:

• RM800 million sale-and-leaseback transaction
• 135-acre freehold industrial site in Seberang Perai, Penang
• From Ann Joo Steel Berhad to Axis REIT Managers Berhad
• Biggest industrial transaction of the year and o­­­ne of the most sizeable industrial transactions in Penang in recent years
• Signing ceremony held at Knight Frank Malaysia HQ on 6 November 2025 – photos here:Group Photo 1, Signing Ceremony (From L-R: Stephen Tew Peng Hwee, Non-Independent Non-Executive Deputy Chairman, Axis REIT Managers Berhad – Leong Kit May, Chief Executive Officer / Executive Director, Axis REIT Managers Berhad – Dato’ Lim Hong Thye, Group Managing Director, Ann Joo Steel Berhad – Dato’ Lim Aun Chuan, Deputy Managing Director, Ann Joo Steel Berhad)
• Driven by rising institutional demand and strong manufacturing growth in the northern region

Knight Frank Malaysia advised on 135-acre asset sale from Ann Joo Steel Berhad to Axis-REIT Kuala Lumpur, Malaysia

Knight Frank Malaysia, the exclusively appointed agent, has facilitated a landmark RM800 million sale and leaseback industrial transaction involving approximately 135 acres of freehold industrial land and manufacturing facilities in Seberang Perai, Penang, from Ann Joo Steel Berhad to Axis-REIT.

Mark Saw, Senior Executive Director of Knight Frank Penang said, “We are honoured to have been entrusted to market and sell this prime 135-acre freehold industrial land in Seberang Perai, which holds historical significance to Ann Joo. This exceptionally rare opportunity represents the biggest industrial transaction of the year, reinforcing strong investor confidence in Penang’s industrial property market growth trajectory, particularly on the mainland. What makes this a one-of-its-kind transaction is the highly scarce freehold industrial asset available for sale in Penang which sits outside of the jurisdiction of Penang Development Corporation (PDC).

This landmark deal underscores the growing strength and investor confidence in Penang’s industrial property market, particularly on the mainland.”

“Driven by robust demand from semiconductor, electronics and high-value manufacturing sectors, Penang continues to attract both local and international investors seeking strategic landbank opportunities. The transaction also reflects the rising land values and increasing scarcity of sizeable industrial plots, reinforcing Seberang Perai’s position as one of Malaysia’s most dynamic industrial growth corridors,” remarked Allan Sim, Senior Executive Director, Land and Industrial Solutions of Knight Frank Malaysia.

“This milestone underscores sustained appetite for scalable and well-positioned industrial assets, particularly in high-growth nodes like Penang,” Allan continued. “With sustained foreign investor confidence, and the continued attractiveness of the northern region anchored by strong industry fundamentals, this presents a timely opportunity for landowners to unlock and realize the value of their assets.”

Knight Frank Malaysia advised both parties throughout the transaction process, providing strategic market intelligence, price guidance, and end-to-end transaction management.

A formal signing ceremony was held at Knight Frank Malaysia’s headquarters in Kuala Lumpur on 6 November 2025, marking the successful conclusion of an important milestone as part of the transaction in the presence of senior representatives from all parties. Knight Frank Malaysia remains committed to thrive together with the relevant stakeholders in line with our national agenda and the vision to create a transformational real estate landscape.

— end of media release —

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