KUALA LUMPUR: Capitaland Malaysia Trust's (CLMT) trustee, MTrustee Bhd, has entered into a conditional sale and purchase agreement to acquire three prime freehold ready-built factories located at the Nusajaya Tech Park in Iskandar Malaysia, Johor from Nusajaya Tech Park Sdn Bhd for RM27.0 million.
The properties consist of two semi-detached factories and one detached factory, with mezzanine offices and guard posts. It has a built-up area of 74,142 square feet and were fully leased to two reputable tenants in the optics and medical sectors, with a weighted average lease to expiry (WALE) of 5.2 years by rental income. The six-year lease terms with built-in rent escalations ranging between two per cent and six per cent per annum will provide income stability to the portfolio, the company stated.
CLMT intends to finance the acquisition through debt and it is expected to generate an annual rental income of RM2.0 million, with a first-year yield of approximately 7.3 per cent.
"We are confident that the proposed acquisition will enable us to gain a foothold in Malaysia's resilient industrial market and one of its largest economic hubs. "This will position CLMT for further growth in 2024 and represents a significant milestone as we accelerate our portfolio reconstitution journey, driving sustainable growth and diversifying our income sources," said CLMT chief executive officer Tan Choon Siang.
Tan added that as the only Malaysia-listed REIT in the CapitaLand Group, CLMT has access to a stable acquisition pipeline that will further enhance our existing portfolio.
"This includes the proposed acquisition (of industrial properties in Johor) and the acquisition of Queensbay Mall from CapitaLand Investment in November 2022. "Looking ahead, we remain focused on pursuing growth targeting properties with stable cash flows and strong operating metrics while maintaining financial discipline," said Tan.