CapitaLand Malaysia Trust (CLMT) has inked a sale and purchase agreement to procure two plots of contiguous freehold land and industrial properties in Penang for RM80 million.
Located in Sungai Jawi, the acquisition includes 5.11 hectares of freehold land with a single storey warehouse annexed to a double storey office building, two single storey detached warehouses, and other ancillary buildings.
CLMT’s entry into Malaysia’s logistics sector after the expansion of its investment mandate beyond the retail sector to include properties in commercial, office and industrial asset classes. Post-transaction, CapitaLand will be looking to increase gearing to 37.2% from 35.9%, which remains below the regulatory limit of 50%.
“Following the expansion of CLMT’s investment mandate in June 2021, 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,” CapitaLand Malaysia REIT Management Sdn Bhd CEO Tan Choon Siang said.
CLMT is in line to gain a foothold in Malaysia’s logistics sector with sizeable property that comes with a total net lettable area of 335,000 sq ft. The group also added that the properties have quality tenants operating in the logistic sector and this is expected to improve its portfolio occupancy.
“We believe the demand for logistics warehouses in Malaysia remains strong and resilient. The proposed acquisition is in line with CLMT’s objectives to deliver long-term and sustainable returns to unitholders by acquiring quality properties with stable recurring income. We expect the proposed acquisition to contribute positively to CLMT’s earnings upon its completion,” added Tan.
CLMT's existing portfolio comprises five shopping malls and a complementary office block located across three key urban centres in Malaysia including Gurney Plaza in Penang, Sungei Wang Plaza in Kuala Lumpur, 3 Damansara and 3 Damansara Office Tower in Petaling Jaya, and The Mines in Seri Kembangan.