KUALA LUMPUR: MTrustee Bhd, on behalf of Capitaland Malaysia Trust
(CLMT), has entered into a sale and purchase agreement with Cynnyx Sdn Bhd to acquire a freehold logistics warehouse at the Hicom-Glenmarie Industrial Park in Shah Alam worth RM39.7 million.
CapitaLand Malaysia REIT Management Sdn Bhd (CMRM) is the manager of CLMT while MTrustee is the trustee.
In a statement today, CLMT said that in tandem with the proposed acquisition, CMRM has also executed a letter of offer with a reputable international luxury fashion retailer to lease the building for 10 years.
"The new lease is expected to commence in the first half of 2024 and will generate a gross rental income of RM3.5 million per annum with an approximate yield of 6.5 per cent, providing CLMT with a stable income stream.
"The proposed acquisition will contribute positively to CLMT’s income upon the commencement of the lease in the financial year 2024,” said the property investment trust.
Under the agreement, CMRM will also undertake a convert-to-suit exercise and transform the logistics property into a temperature-controlled distribution centre at an estimated cost of RM14.6 million.
"The logistics property is a single-storey detached warehouse with an annexed three-storey office building and a built-up area of 84,755 square feet (sq ft),” it said.
CMRM chief executive officer Tan Choon Siang said that the proposed acquisition of the second logistics property, after its first logistics property in Penang, is a continuation of CLMT’s journey to drive sustainable growth and diversify income sources.
"It underscores our focus on executing and delivering on our growth initiatives to capture value in the fast-growing new economy sector and capitalise on the rising demand for high-quality logistics infrastructure in prime locations,” he said.
Following the proposed acquisition, CLMT’s enlarged portfolio will consist of eight properties with the proportion of logistics properties increasing from 7.8 per cent to 9.6 per cent of the total net lettable area of approximately 4.4 million sq ft.
"Portfolio occupancy is expected to improve from 89.2 per cent as at March 31, 2023, to 89.3 per cent upon the commencement of the new lease in 2024,” it added. - Bernama
