CapitaLand unit to acquire logistics property for $18.2m in Malaysia

The acquisition is expected to be completed in H2 2022.

CapitaLand Investment Limited subsidiary, CapitaLand Malaysia Trust (CMLT), entered an agreement for the acquisition of two plots of contiguous freehold land and industrial properties, marking its expansion into Malaysia’s logistics sector.

In a statement, CMLT said it will be acquired for around $18.2m (RM80m) with bank borrowings. Post-transaction, the company’s gearing will increase to 37.2% from 35.9% but is still below the regulatory limit of 50%. 

The proposed acquisition is expected to be completed in the second half of 2022.

The logistics property has a nettable land area of around 335,000 square feet, with tenants operating in the logistics sector, sitting on a land area of around 12.6 acres.

“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,” said Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management Sdn. Bhd.

Tan said they expect the proposed acquisition to contribute positively to CLMT’s earnings upon completion.

Located in Kawasan Perusahaan Valdor in Sungai Jawi in Penang, the property has excellent accessibility, due to its proximity to the Batu Kawan Industrial Park and connectivity to the North South Highway and Penang Second Bridge. 

Penang, which is often dubbed the Silicon Valley of the East, is a key industrial hub in Malaysia which caters to a mix of foreign multinational corporations, and large companies from the electrical, electronics, machinery and equipment, and medical technology sectors.

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. 

CMLT currently has five shopping malls in its portfolio, as well as a complementary office block located in three key urban centres in Malaysia.

$1 = RM4.39

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