CapitaLand Malaysia Trust buys three industrial properties in Senai for RM72m

• When the three properties are fully leased, CLMT is expected to generate an annual gross rent of RM5.1 million, with a first-year gross yield of approximately 7.1%.

KUALA LUMPUR (Feb 5): CapitaLand Malaysia Trust (KL:CLMT) is buying three industrial properties located in Senai Airport City for RM72 million from Gromutual Bhd’s subsidiary Rainbow Entity Sdn Bhd.

In a filing with Bursa Malaysia on Wednesday, CLMT said the acquisition is conditional upon the vendor, Rainbow Entity, completing the construction of the three factories at its own cost and obtaining the necessary approvals and the issuance of the Certificate of Completion and Compliance before April 30, 2025.

CLMT's manager, CapitaLand Malaysia REIT Management Sdn Bhd (CMRM), said the construction of the properties is scheduled to be completed in the first quarter of 2025.

Upon completion, CLMT will enter into a seven-year lease agreement with a tenant that is in the life sciences industry and listed on the Shanghai Stock Exchange STAR Market, for one of the three properties. The lease also comes with built-in rent escalations.

When the three properties are fully leased, CLMT is expected to generate an annual gross rent of RM5.1 million, with a first-year gross yield of approximately 7.1%.

CMRM chief executive officer Yong Su-Lin said the acquisition marks the property trust’s second foray into the industrial sector in Johor, which is developing into a significant manufacturing hub.

“By securing prime assets in strategic locations, we are well-positioned to capitalise on the growing demand from companies looking to establish industrial facilities in the newly announced Johor-Singapore SEZ (Special Economic Zone),” Yong said.

“This acquisition is a continuation of our value creation efforts to rejuvenate CLMT’s portfolio with good quality assets that have long-term growth potential as well as income stability and diversification,” she added.

This acquisition brings CLMT’s portfolio to 15 properties, increasing the proportion of logistics and industrial assets to 7.9% from 2.8% of its total portfolio under management.

CLMT plans to finance the acquisition through existing debt facilities. Following the transaction, CLMT's proforma gearing will increase from 41.3% to 44.4%, remaining below the regulatory limit of 50%. The acquisition is expected to be completed by the second half of 2025, said CMRM.

CLMT units closed unchanged at 68 sen on Wednesday, giving the REIT a market capitalisation of RM1.96 billion.

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