CapitaLand Malaysia Trust to acquire first logistics property for RM80m

CAPITALAND Malaysia Trust (CLMT) has entered into a sale-and-purchase agreement to acquire 2 contiguous plots of freehold land and their industrial properties in Penang for RM80 million (S$25.1 million), the Reit manager, a subsidiary of CapitaLand Investment Limited : 9CI 0%, said on Tuesday (Jun 7).

Sitting on a land area of approximately 12.6 acres, the plots, next to each other in Penang’s Sungai Jawi district, have a net lettable area of approximately 335,000 square feet and tenants operating in the logistics sector.

The property includes a single-storey warehouse annexed to a double-storey office building, as well as 2 single-storey detached warehouses, and other ancillary buildings.

The deal is expected to be completed by in H2 2022.

Post transaction, CLMT’s gearing is expected to increase from 35.9 per cent to 37.2 per cent. The manager said the proposed acquisition will contribute positively to CLMT’s earnings and is accretive at the distribution level.

This marks CLMT’s entry into the logistics sector. Its current portfolio comprises 5 shoppings malls and a complementary office block across 3 key urban centres in Malaysia.

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Tan Choon Siang, chief executive of CapitaLand Malaysia Reit Management, said: “We are pleased to embark on the acquisition of our maiden logistics property, which is well-placed to benefit from Penang’s growing importance as one of the most dynamic industrial hubs in Malaysia. We believe the demand for logistics warehouses in Malaysia remains strong and resilient.”

CLMT ended Tuesday 0.85 per cent lower at RM0.585.