KUALA LUMPUR (June 8): CapitaLand Malaysia Trust has proposed to buy industrial properties in Penang from Dynaciate Group Bhd for RM80 million to venture into the logistics sector.
The group said the acquisition includes 5.11 hectares of freehold land with a single storey warehouse annexed to a double storey office building, two single storey detached warehouses, and other ancillary buildings.
CapitaLand intends to fund the acquisition with bank borrowings, and is expected to increase gearing to 37.2% from 35.9%, which remains below the regulatory limit of 50%.
In a filing with Bursa Malaysia, the REIT said the acquisition will enable it to gain a foothold in Malaysia’s logistics sector with sizeable property that comes with a total net lettable area of 335,000 sq ft.
It said the properties are in close proximity to the Batu Kawan Industrial Park and offers excellent accessibility to the North South Highway and Penang Second Bridge.
CapitaLand added that the properties have quality tenants operating in the logistic sector and this is expected to improve its portfolio occupancy.
“We believe the demand for logistics warehouses in Malaysia remains strong and resilient,” said Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management Sdn Bhd, the manager of CapitaLand.
Dynaciate, on the other hand, said disposing the properties allowed it to monetise its investment and realise a net gain of RM19.8 million from the disposal.
Dynaciate said the disposal requires its shareholders’ approval and expects to complete the disposal by fourth quarter this year.
CapitaLand closed half sen lower at 58 sen on Tuesday (June 7), valuing the company at RM1.25 billion, while Dynaciate gained 3 sen to 17 sen, giving it a market capitalisation of RM166.0 million.
Edited by S Kanagaraju