CapitaLand Malaysia Trust has entered into a sale and purchase agreement to acquire two plots of contiguous freehold land and industrial properties erected therein in Sungai Jawi, Penang (the Logistics Property).
This marks 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 classes1.
CLMT intends to fund the total consideration of RM80 million for the Logistics Property with bank borrowings. Post-transaction, CLMT’s gearing will increase from 35.9% to 37.2%, which remains well below the regulatory limit of 50%.
The proposed acquisition will contribute positively to CLMT’s earnings and is accretive at the distribution level. Subject to the fulfilment of conditions precedent, the proposed acquisition is expected to be completed in 2H 2022.
Sitting on a land area of approximately 12.6 acres, the Logistics Property has a net lettable area (NLA) of approximately 335,000 square feet (sq ft) with quality tenants operating in the logistics sector.
Located in Kawasan Perusahaan Valdor in Sungai Jawi, the freehold Logistics Property has excellent accessibility, due to its close proximity to the Batu Kawan Industrial Park and connectivity to the North South Highway and Penang Second Bridge.
Often dubbed the Silicon Valley of the East, Penang is a key industrial hub in Malaysia that has attracted a mix of foreign multinational corporations and local large companies from the electrical and electronics, machinery and equipment, and medical technology sectors.
Mr Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management Sdn. Bhd. (formerly known as CapitaLand Malaysia Mall REIT Management Sdn. Bhd.), the manager of CLMT, said: “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.
