CAPITALAND Malaysia Trust (CLMT), a subsidiary of CapitaLand Investment, on Wednesday (Feb 5) signed a conditional agreement to acquire three freehold industrial properties for a cash consideration of RM72 million (S$22 million) from Rainbow Entity, a subsidiary of Bursa Malaysia-listed Gromutual.
The properties are located in Senai Airport City, an industrial and manufacturing hub in the Senai region, which is part of the Johor-Singapore Special Economic Zone in Malaysia.
In a press statement, CLMT said that the purchase consideration is at a discount to the independent market valuation of RM72.5 million as at Jan 23. The valuation was conducted by Nawawi Tie Leung Property Consultants and commissioned by CLMT’s trustree, MTrustee.
The price was arrived at on a “willing buyer, willing seller” basis, based on the market value.
The sale and purchase of the properties is conditional upon Rainbow Entity completing the buildings’ construction and obtaining a certificate of completion and compliance, as well as CLMT receiving this certificate, within the period from the signing of the agreement up to Apr 30, 2025.
The three properties – three single-floor detached factories that are each annexed with a two-storey office block – are expected to be completed in the first quarter of 2025.
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One of the three properties has a provisional land area of 12,869 square metres (sq m) and a built-up area of 83,725 square feet (sq ft), while each of the remaining two has a provisional land area of 8,113 sq m and a built-up area of 50,030 sq ft. They have a collective built-up area of 183,785 sq ft.
CLMT added that it intends to enter into a long-term lease agreement of seven years with a tenant from the life sciences industry for one of the three properties.
It said that when the three properties are fully leased, they will contribute positively to its income and is expected to be distribution per unit accretive.
The three properties are projected to generate an annual gross rent of RM5.1 million, with a first-year gross yield of approximately 7.1 per cent, said CLMT.
The acquisition will expand CLMT’s industrial and logistics portfolio to nine properties.
The purchase will be financed through existing debt facilities, and the deal is expected to be completed in the second half of 2025, said CLMT.
Shares of CapitaLand Investment closed down 0.4 per cent or S$0.01 at S$2.45, before the announcement. Units of CLMT, which is listed on Bursa Malaysia, closed unchanged at RM0.68.
