CapitaLand Malaysia makes foray into industrial properties with the proposed acquisition of three prime freehold ready-built factories located at the Nusajaya Tech Park in Iskandar Malaysia, Johor from Nusajaya Tech Park Sdn. Bhd. for RM27 million.
This marks the entry for the manager into the high-technology manufacturing sector of the industrial market and further
diversifies geographical footprint to Johor, particularly Iskandar Malaysia, as an attractive investment destination within the manufacturing sector of the industrial market.
The group said with its competitive land and labour costs, Iskandar Malaysia has successfully attracted many high-tech and capital-intensive companies to base their operations there, supported by the Johor state government’s business-friendly
policies.
Nusajaya Tech Park is a 210-hectare integrated industrial development located at Gerbang Nusajaya in Iskandar Malaysia, Johor. Designed to accommodate a wide range of light to medium industries, it is home to multinational corporations and leading local enterprises from various industries, including aerospace, automotive electronics, precision engineering, IT, e-commerce and data centres.
Strategically located within minutes from the Malaysia-Singapore Second Link Expressway, Nusajaya Tech Park offers seamless connectivity to a network of international airports and seaports in both Singapore and Malaysia. This prime location ensures efficient transportation and enables easy access to global markets for businesses operating in the park.
The Subject Properties consist of two (2) semi-detached factories and one (1) detached factory, with mezzanine offices and guard posts. The factories were completed about seven years ago and feature a sleek, modern frontage with separate loading areas. With an efficient layout and column-free space, the building specifications of the Subject Properties include
high floor loading and high ceilings.
CLMT intends to finance the Proposed Acquisition through debt. The Proposed Acquisition is expected to generate an annual rental income of RM2.0 million, with a first-year yield of approximately 7.3%. It will contribute positively to CLMT’s income and is distribution per unit accretive to CLMT unitholders on a proforma basis. The Proposed Acquisition is expected to
be completed by the fourth quarter of 2024.
