CAPITALAND Malaysia Trust (CLMT), a subsidiary of CapitaLand Investment, has entered into a sale-and-purchase agreement to acquire a freehold automated logistics property in Selangor, Malaysia, for RM180 million (S$54.2 million), announced the trust’s manager on Monday (Dec 2).
The property, Elmina Logistics Hub, is a 40-metre high single-storey automated warehouse with a total built-up area of around 14,866.67 square metres.
It features an automated storage and retrieval system (ASRS) that employs cranes and robotics to efficiently automate the placement and retrieval of goods, the manager added.
“By streamlining logistics operations, ASRS enables optimisation of warehouse space, enhances speed and accuracy, and reduces labour costs and human error,” it said.
Elmina Logistics Hub features 19 loading bays equipped with hydraulic dock levellers and is capable of handling more than 30,000 pallets.
Upon the completion of the acquisition, CLMT will enter a lease agreement with Projek Tetap Teguh, an indirect wholly-owned subsidiary of Malaysia-based construction company PTT Synergy Group.
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The property will be fully let out for office and industrial purposes, with a fixed term of 10 years and an option to renew the lease for another two terms of five years each.
The monthly rent has been fixed at about RM1 million, subject to agreed incremental adjustments throughout the term of the lease.
In a separate bourse filing, the board of directors at CapitaLand Malaysia Reit Management (CMRM), the manager of CLMT, said the acquisition is in line with the trust’s investment objective of delivering long-term and sustainable distribution of income to unitholders by acquiring “quality real estate” with stable recurring income.
For instance, the property is expected to generate an annual gross rent of RM12.3 million, with a first-year gross yield of around 6.8 per cent, it said.
The acquisition will therefore be accretive to CLMT’s distribution per unit, upon the commencement of the lease agreement, it said.
Some 10 per cent of the purchase consideration has been paid, with the remaining balance paid upon the completion of the property’s construction – scheduled for the first half of 2025 – and approval from regulatory authorities.
This will be financed through existing debt facilities, it said.
Following the transaction, which is expected to complete in the fourth quarter of 2025, CLMT’s pro forma gearing will rise to 44.1 per cent, from 42.1 per cent. The regulatory pro forma gearing limit is 50 per cent.
With Elmina Logistics Hub, CLMT will have 11 properties in its portfolio, increasing the proportion of its new economy assets to 6 per cent of its total portfolio by assets under management, from 3 per cent.
Tan Choon Siang, chief executive of CMRM, noted that this is the group’s first acquisition of a modern automated logistics property.
It will enable the trust to capitalise on growing demand for such assets, helping customers to enhance operational efficiency, maximise space utilisation and reduce reliance on manual labour, said Tan.
“CLMT’s strategic move addresses the current market gap in automated warehouses, providing us with the opportunity to scale in this specialised segment,” he added.
“With a long-term lease arrangement, the acquisition strengthens our industrial and logistics tenant base and improves the overall resilience of CLMT’s portfolio.”
