KUALA LUMPUR : Capital and Malaysia Trust
(CLMT) is acquiring a freehold automated logistics property in Elmina Business Park, Selangor, from PTT Logistics Hub 1 Sdn Bhd, for RM180 million.
In a statement, CLMT said the acquisition is expected to contribute positively to its revenue, with the Elmina Logistics Center expected to generate an annual gross rent of RM12.3 million with a first year gross yield of around 6. 8%.
According to the release, the logistics center is a single-story, 40-meter-high automated warehouse equipped with ASRS, a computer-controlled system that is an integral part of modern warehouse management.
The property has 19 loading docks with hydraulic dock levelers and is capable of handling over 30,000 pallets.
The installation is expected to be completed in the first half of 2025.
CLMT will also enter into a rental agreement to fully lease the property to Projek Tetap Teguh Sdn. Bhd., an indirect wholly-owned subsidiary of PTT Synergy Group Bhd.
He said the 10-year lease term, with built-in rent increases, should provide revenue stability for CLMT’s portfolio.
Tan Choon Siang, CEO of CapitaLand Malaysia REIT Management Sdn Bhd, director of CLMT, said the acquisition of its first modern automated logistics property allows CLMT to capitalize on the growing demand for such assets that enable customers to improve operational efficiency, maximize the use of space and reduce the reliance on manual labor.
“CLMT’s strategic evolution fills the current market gap in the area of automated warehouses, providing us with the opportunity to evolve in this specialized segment.
“The long-term lease will also provide stable recurring revenue 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, using existing debt facilities.
Following the transaction, CLMT indicated that its pro forma debt ratio would increase from 42.1% to 44.1%, which remains below the regulatory limit of 50%.