CapitaLand Malaysia Trust (CLMT) has signed an agreement to purchase the Elmina Logistics Hub in Selangor for RM180 million, marking its first acquisition of an automated logistics property.

The freehold property, located in the Elmina Business Park, boasts cutting-edge features such as an automated storage and retrieval system, 19 loading bays, and a capacity for 30,000 pallets.

It is expected to be completed by the first half of 2025 and will be leased to Projek Tetap Teguh Sdn Bhd, a subsidiary of PTT Synergy Group Bhd, for 10 years.

The lease agreement, which includes built-in rent escalations, is projected to generate an annual gross rent of RM12.3 million, offering an initial gross yield of approximately 6.8%.

“The acquisition of our first modern automated logistics property enables CLMT to capitalise on the growing demand for such assets that enhance operational efficiency, maximise space utilisation and reduce reliance on manual labour,” said CapitaLand Malaysia REIT Management (CMRM) CEO Tan Choon Siang.

The purchase increases the proportion of logistics and industrial assets in CLMT’s portfolio to 6% from 3% and brings its total managed properties to 11.

Since expanding its investment mandate in 2021, CLMT has invested nearly RM330 million in industrial and logistics assets as part of its portfolio rejuvenation strategy.

The acquisition will be financed through existing debt facilities, increasing CLMT’s pro forma gearing from 42.1% to 44.1%, still below the regulatory cap of 50%.

Completion is expected by the fourth quarter of 2025. –TMR