CapitaLand Malaysia Trust (CLMT) is set to acquire five high-specification industrial facilities in Iskandar Malaysia, Johor for a total value of RM220.8 million ($70.01 million).
The facilities are located in i-TechVallley in Iskandar Malaysia, and are to be acquired from Greenhill SILC and Pentagon Land, both wholly-owned subsidiaries of AME Elite Consortium.
The price of RM220.8 million is at a discount of 0.6% to the independent market valuation of RM222.1 million.
The acquisition will be financed through existing debt facilities, and as part of the forward purchase, CLMT will pay a 10% deposit upfront with the balance to be paid upon completion.
The facilities are expected to be completed progressively from 1Q2027 to 1Q2028, allowing CLMT to phase leasing in line with market demand. Upon completion of all assets above and realisation of a full year of operating income, the acquisition is expected to contribute positively to CLMT’s income and be distribution per unit (DPU) accretive, with a projected first-year gross yield of approximately 7.3%.
The five properties have a total built-up area of 524,077 square feet and comprise five single-storey detached factories with two-storey office components and ancillary buildings.
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Upon completion, CLMT’s Johor portfolio will comprise 11 industrial assets with a combined built-up area of approximately 781,937 square feet, increasing CLMT’s industrial and logistics assets under management from 7.9% to 11.5%.
“This acquisition supports CLMT’s strategy to expand our industrial and logistics portfolio with high-quality assets in an established location. Johor’s industrial market continues to benefit from the Johor-Singapore Special Economic Zone (JS-SEZ) and major infrastructure upgrades such as the Rapid Transit System (RTS) Link,” says Yong Su-Lin, CEO of CapitaLand Malaysia REIT management.
Shares in CapitaLand Investment closed 2 cents lower or 0.743% down at $2.67 on Dec 22.
