CapitaLand Malaysia Trust (CLMT) is acquiring two plots of contiguous freehold land and industrial properties in Sungai Jawi, Penang.
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 classes.
CLMT was previously known as CapitaLand Malaysia Mall Trust.
The logistics asset to be acquired has a net lettable area (NLA) of approximately 335,000 square feet.
“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”, said Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management.
“We believe the demand for logistics warehouses in Malaysia remains strong and resilient”, he added.
CLMT intends to fund the total consideration of MYR80 million for the logistics assets with bank borrowings.
Post-transaction, CLMT’s gearing will increase from 35.9% to 37.2%.
The proposed acquisition will contribute positively to CLMT’s earnings and is accretive at the distribution level, said the REIT.
Subject to the fulfilment of conditions precedent, the proposed acquisition is expected to be completed in 2H 2022.