KUALA LUMPUR (December 2): CapitaLand Malaysia Trust (KL:CLMT) on Monday entered into a deal to acquire its first automated logistics property, Elmina Logistics Hub, for RM180 million.
CLMT director CapitaLand Malaysia REIT Management Sdn Bhd (CMRM) said the property, located at Elmina Business Park in Selangor, has a state-of-the-art automated storage and retrieval system, improving efficiency operational and reducing the use of manual labor. .
Elmina Logistics Hub is expected to be completed in the first half of 2025. It has, among other things, 19 loading docks with hydraulic dock levelers and a storage capacity of 30,000 pallets.
The freehold property will be fully leased to Projek Tetap Teguh Sdn Bhd, a subsidiary of PTT Synergy Group Bhd, for 10 years after its completion, CMRM said in a statement.
The lease, which includes built-in rent increases, is expected to generate a gross annual rent of RM12.3 million, providing a first-year gross yield of about 6.8%, he added.
“The acquisition of our first modern automated logistics property allows CLMT to capitalize on the growing demand for such assets which enable customers to improve operational efficiencies, maximize space utilization and reduce recourse to manual labor,” said Tan Choon Siang, CEO of CMRM.
This acquisition brings CLMT’s portfolio to 11 properties, increasing the proportion of logistics and industrial assets to 6% from 3% of its total portfolio under management.
“Intensifying our portfolio rejuvenation efforts, we have announced investments of nearly RM330 million in industrial and logistics assets since the expansion of CLMT’s investment mandate in 2021,” Tan said.
CLMT plans to finance the acquisition using existing debt facilities, which will increase its pro forma debt ratio from 42.1% to 44.1%, remaining below the regulatory limit of 50%. The acquisition is expected to be completed by the fourth quarter of 2025, CMRM said.