KUALA LUMPUR: Capitaland Malaysia Trust (CLMT) is acquiring a freehold automated logistics property in Elmina Business Park, Selangor, from PTT Logistics Hub 1 Sdn Bhd, for RM180mil.

In a statement, CLMT said the acquisition is expected to contribute positively to its income with the Elmina Logistics Hub expected to generate an annual gross rent of RM12.3mil with a first-year gross yield of about 6.8%.

According to the statement, the logistics hub is a 40-metre high, single-storey automated warehouse featuring ASRS, a computer-controlled system that is integral to modern warehouse management.

The property features 19 loading bays with hydraulic dock levellers and is capable of handing over 30,000 pallets.

The facility is scheduled to be completed in the first half of 2025.

CLMT will also enter into a lease agreement to fully lease the property to Projek Tetap Teguh Sdn. Bhd., an indirect wholly owned subsidiary of PTT Synergy Group Bhd.

It said the 10-year lease term with built-in rent escalations is expected to provide income stability to CLMT’s portfolio.

Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management Sdn Bhd, the manager of CLMT, said the acquisition of its first modern automated logistics property enables CLMT to capitalise on growing demand for such assets that enable customers to enhance operational efficiency, maximise space utilisation and reduce reliance on manual labour.

“CLMT’s strategic move addresses the current market gap in automated warehouses, providing us with the opportunity to scale in this specialised segment.

“The long-term lease will also provide stable recurring income and improve the resilience of our portfolio,” he added.

CLMT intends to finance the acquisition, which is expected to be completed in the fourth quarter of 2025, through existing debt facilities.

Following the transaction, CLMT said its proforma gearing will increase from 42.1% to 44.1%, which remains below the regulatory limit of 50%.

Source: TheStar, 02 Dec 2024