PETALING JAYA: TA Research is positive on Capitaland Malaysia Trust
’s (CLMT) acquisition of three freehold ready-built factories located at the Nusajaya Tech Park in Iskandar Malaysia, Johor, given its fair purchase price of RM27mil.
“The acquisition price of RM364 per sq ft (psf) for the factory space in Nusajaya Tech Park is considered fair, given the current asking price range of approximately RM300 to RM400 psf for similar-sized factories, as indicated by various property websites.”
Nawawi Tie Leung Property Consultants Sdn Bhd, an independent market valuer, has assessed the properties’ market value at RM28.2mil.
“Additionally, the purchase price of RM27mil also reflects a slight discount compared to the independent market valuation.
“We estimate that the acquisition will result in a marginal increase in CLMT’s gearing ratio from 42.4% (as at end-December 2023) to 42.7%,” the research house said.
This exercise marks CLMT’s first acquisition of industrial properties in Malaysia, consistent with its growth strategy and diversification initiatives.
The two previous non-retail assets acquisitions were logistics-oriented.
Following the latest acquisition, CLMT’s enlarged portfolio will consist of 10 properties, with the proportion of industrial and logistics properties increasing from 10% to 11% of the total portfolio’s net lettable area, amounting to about 4.4 million sq ft.
“Assuming a blended net property income margin of 85% and leases starting in December 2024, the proposed acquisitions are projected to increase our earnings forecasts by 0.1%, 1.1% and 0.9% in financial year 2024 (FY24), FY25 and FY26, respectively.
“We maintain our current earnings forecasts pending the completion of the deal,” TA Research said.
It has maintained its “buy” recommendation on CLMT with an unchanged target price of 68 sen, based on a targeted yield of 7% to its calendar year 2024 dividend per unit projection of 4.7sen.
