“CapitaLand Malaysia Trust to acquire RM72 million industrial assets in Johor, strengthening its portfolio and growth strategy.“
Kuala Lumpur, 6th Feb 2025, 11.10am – CapitaLand Malaysia Trust (CLMT) is set to acquire three industrial properties in Senai Airport City for RM72 million from Rainbow Entity Sdn Bhd, a subsidiary of Gromutual Bhd.
In a filing with Bursa Malaysia, CLMT stated that the purchase is contingent on Rainbow Entity completing the construction of the factories and obtaining all necessary approvals, including the Certificate of Completion and Compliance, by April 30, 2025.
CapitaLand Malaysia REIT Management Sdn Bhd (CMRM), the manager of CLMT, said the construction is expected to be completed in the first quarter of 2025. Upon completion, CLMT will enter into a seven-year lease with a life sciences industry tenant listed on the Shanghai Stock Exchange STAR Market for one of the three properties. The lease will include built-in rent escalations.
Once all three properties are fully leased, CLMT is expected to generate an annual gross rental income of RM5.1 million, with a projected first-year gross yield of approximately 7.1%.
CMRM chief executive officer Yong Su-Lin highlighted that this acquisition marks CLMT’s second investment in the industrial sector in Johor, which is emerging as a key manufacturing hub.
“By securing prime assets in strategic locations, we are well-positioned to capitalize on the growing demand from companies looking to establish industrial facilities in the newly announced Johor-Singapore Special Economic Zone (JS-SEZ),” Yong said.
“This acquisition aligns with our long-term strategy to enhance CLMT’s portfolio with high-quality assets that offer stable income, growth potential, and diversification,” she added.
With this latest acquisition, CLMT’s portfolio will expand to 15 properties, increasing the share of logistics and industrial assets from 2.8% to 7.9% of its total portfolio under management.
CLMT plans to fund the acquisition through existing debt facilities. Post-transaction, its proforma gearing ratio is expected to rise from 41.3% to 44.4%, remaining below the regulatory cap of 50%. The acquisition is slated for completion in the second half of 2025.
As of Wednesday, CLMT units closed unchanged at 68 sen, maintaining a market capitalization of RM1.96 billion.
