CapitaLand Malaysia Trust acquires automated logistics property for RM180m

• This acquisition brings CLMT’s portfolio to 11 properties, increasing the proportion of logistics and industrial assets to 6% from 3% of its total portfolio under management.

KUALA LUMPUR (Dec 3): CapitaLand Malaysia Trust (KL:CLMT) on Monday entered in an agreement to  acquire its first automated logistics property, Elmina Logistics Hub, for RM180 million.

CLMT's manager, CapitaLand Malaysia REIT Management Sdn Bhd (CMRM), said the property, located within the Elmina Business Park in Selangor, features a state-of-the-art automated storage and retrieval system, enhancing operational efficiency and reducing reliance on manual labour.

Elmina Logistics Hub is expected to be completed in the first half of 2025. Among others, it has 19 loading bays with hydraulic dock levelers and a storage capacity for 30,000 pallets.

The freehold property will be fully leased to Projek Tetap Teguh Sdn Bhd, a subsidiary of PTT Synergy Group Bhd, for 10 years upon completion, said CMRM in a statement.

The lease, which includes built-in rent escalations, is expected to generate a gross annual rent of RM12.3 million, offering a first-year gross yield of about 6.8%, it added.

“The acquisition of our first modern automated logistics property enables CLMT to capitalise on the growing demand for such assets that enable customers to enhance operational efficiency, maximise space utilisation and reduce reliance on manual labour,” said CMRM chief executive officer Tan Choon Siang.

This acquisition brings CLMT’s portfolio to 11 properties, increasing the proportion of logistics and industrial assets to 6% from 3% of its total portfolio under management.

“Stepping up our portfolio rejuvenation efforts, we have announced close to RM330 million investments in industrial and logistics assets since the expansion of CLMT’s investment mandate in 2021,” said Tan.

CLMT plans to finance the acquisition through existing debt facilities, which will increase its pro forma gearing from 42.1% to 44.1%, remaining below the regulatory limit of 50%. The acquisition is expected to be completed by the fourth quarter of 2025, said CMRM.

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