CapitaLand Malaysia Trust has entered a deal to acquire an industrial property in Sungai Jawi, in Penang, Malaysia, in the REIT’s first foray into the logistics sector, the trust said in a release filed to SGX Tuesday.
The deal is the first logistics sector acquisition after the investment mandate of the REIT, formerly called CapitaLand Malaysia Mall Trust (CLMT), was expanded beyond the retail sector to include commercial, office and industrial asset properties, the filing said.
CapitaLand Investment holds 39 percent of CapitaLand Malaysia Trust, as of end-March, according to CLI’s website.
Tan Choon Siang, CEO of the REIT’s manager, said the property is well-placed to benefit from Penang’s growing importance as a Malaysian industrial hub.
“We believe the demand for logistics warehouses in Malaysia remains strong and resilient,” Tan said in the statement.
The property consists of a single-storey warehouse annexed to a two-storey office building, and two single-storey detached warehouses and other ancillary buildings, the REIT said. The purchase price is based on the market value of the property of MYR80 million, according to an appraisal by PPC International, the filing said.
The property’s seller is Ingenieur EPCM, a wholly owned subsidiary of Dynaciate Group, which is listed on Bursa Malaysia, the filing said.
The consideration will be funded with bank borrowings, the filing said.
CapitaLand Malaysia Trust said the acquisition would contribute positively to earnings, and would be distribution per unit (DPU) accretive.
The deal is expected to be completed in the second half of this year, the filing said.
CapitaLand Malaysia Trust’s existing portfolio includes five shopping malls and a complementary office block, located in Penang, Klang Valley, and Pahang, the filing said.