CapitaLand Malaysia Trust to acquire lands in Penang for RM80mil

KUALA LUMPUR: Capitaland Malaysia Trust (CLMT) has entered into a sale and purchase agreement to acquire two plots of contiguous freehold land and industrial properties erected therein in Sungai Jawi, Penang for RM80 million.

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, the group said in a filing with Bursa Malaysia today.

"Post-transaction, CLMT’s gearing will increase from 35.9 per cent to 37.2 per cent, which remains well below the regulatory limit of 50 per cent.

"The proposed acquisition will contribute positively to CLMT’s earnings and is accretive at the distribution level,” it said.

CapitaLand Malaysia REIT Management Sdn Bhd’s chief executive officer and CLMT manager, Tan Choon Siang said the proposed acquisition is in line with the company’s objective to deliver long term and sustainable returns to unitholders by acquiring quality properties with stable recurring income.

"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.

"We believe the demand for logistics warehouses in Malaysia remains strong and resilient,” he said. - Bernama