CapitaLand Malaysia Trust (CLMT), which is wholly-owned by CapitaLand Investment, has acquired a freehold automated logistics property from PTT Logistics Hub 1.
The property, Elmina Logistics Hub, is located within Elmina Business Park and has a purchase consideration of RM180 million ($54.3 million).
According to the group, the acquisition is expected to contribute positively to CLMT’s income. The property is expected to generate an annual gross rent of RM12.3 million, with a first-year gross yield of approximately 6.8%, adds CLMT.
In addition to the sale and purchase agreement, the group is set to enter into a lease agreement to fully lease the property to Projek Tetap Teguh, an indirect wholly owned subsidiary of PTT Synergy Group Berhad.
The construction of Elmina Logistics Hub is scheduled to be completed in the first half of 2025.
CLMT intends to finance the acquisition through existing debt facilities.
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Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management, says: “The acquisition of our first modern automated logistics property enables CLMT to capitalise on the growing demand for such assets that enable customers to enhance operational efficiency, maximise space utilisation and reduce reliance on manual labour. CLMT’s strategic move addresses the current market gap in automated warehouses, providing us with the opportunity to scale in this specialised segment. The long-term lease will also provide stable recurring income and improve the resilience of our portfolio.”
He adds: “Stepping up our portfolio rejuvenation efforts, we have announced close to RM330 million investments in industrial and logistics assets since the expansion of CLMT’s investment mandate in 2021. We are confident that these acquisitions will further strengthen CLMT’s portfolio, positioning it for continued growth.”
On a pro forma basis, CLMT’s gearing is expected to increase from 42.1% to 44.1% following the acquisition.
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The completion of the acquisition is expected in the fourth quarter of 2025.
Shares in CapitaLand Investment closed 2 cents higher, or up 0.73%, at $2.75 on Dec 2.
