CapitaLand Malaysia Trust has entered into a sale and purchase agreement to acquire two plots of contiguous freehold land and industrial properties erected therein in Sungai Jawi, Penang (the Logistics Property). This marks CLMT's entry into Malaysia's logistics sector after the expansion of its investment mandate beyond the retail sector to include properties in commercial, office and industrial asset classes. CLMT intends to fund the total consideration of MYR 80 million for the Logistics Property with bank borrowings.

Post-transaction, CLMT's gearing will increase from 35.9% to 37.2%, which remains well below the regulatory limit of 50%. The proposed acquisition will contribute positively to CLMT's earnings and is accretive at the distribution level. Subject to the fulfilment of conditions precedent, the proposed acquisition is expected to be completed in 2H 2022.

Sitting on a land area of approximately 12.6 acres, the Logistics Property has a net lettable area (NLA) of approximately 335,000 square feet (sq ft) with quality tenants operating in the logistics sector. Located in Kawasan Perusahaan Valdor in Sungai Jawi, the freehold Logistics Property has excellent accessibility, due to its close proximity to the Batu Kawan Industrial Park and connectivity to the North South Highway and Penang Second Bridge. Often dubbed the Silicon Valley of the East, Penang is a key industrial hub in Malaysia that has attracted a mix of foreign multinational corporations and local large companies from the electrical and electronics, machinery and equipment, and medical technology sectors.

CLMT's existing portfolio comprises five shopping malls and a complementary office block located across three key urban centres in Malaysia. They are Gurney Plaza in Penang; three properties in Klang Valley ­ a majority interest in Sungei Wang Plaza in Kuala Lumpur; 3 Damansara and 3 Damansara Office Tower in Petaling Jaya; and The Mines in Seri Kembangan; and East Coast Mall in Kuantan, Pahang.