In August, The Edge reported that KIP REIT would acquire an existing lease over part of a 2.9ha leasehold land with an industrial warehouse in the Port Klang Free Zone, Pulau Indah for RM23.7 million.
The business paper also reported that month that Axis REIT, which mainly focuses on industrial assets, had agreed to acquire two adjoining pieces of land together with buildings near Port Klang for RM158.64 million.
Axis REIT was quoted as saying that the acquisition of the properties will boost income and benefit the fund in the long term, noting that the fully-occupied warehousing facilities have “strong revenue-producing potential and accessibility to major highways”.
“Those (acquisitions) are the things, certainly, that would be a catalyst for development in Pulau Indah, Carey Island and around Port Klang itself,” Foo told CNA.
“Connectivity to Port Klang is very crucial as it’s the exit point for the export of goods, opening up a lot of opportunities for more commercial activities in the east coast of Malaysia,” he added.
CAN KUANTAN PORT CATCH UP?
Like Port Klang, the area around Kuantan Port on the east coast has a distinctive industrial tint to it, with large petrochemical tanks dotting the land and gas pipes lining the roads.
Numerous homestays in the area cater to industrial workers who live far away and need long-term rentals near the industrial areas their companies take them to.
