CapitaLand Malaysia Trust Expands Johor Footprint with RM220.8 Million Acquisition of High-Spec Industrial Assets

Strategic Move Positions CLMT to Capture Rising Demand in Johor’s Industrial Corridor

Kuala Lumpur, 22 December 2025 – CapitaLand Malaysia Trust (CLMT) has announced a landmark acquisition that deepens its presence in Johor’s thriving industrial sector. The Trust has entered into a forward purchase agreement to acquire five state-of-the-art industrial facilities in i-TechValley, Iskandar Malaysia, for a total consideration of RM220.8 million. The transaction, struck at a slight 0.6% discount to the independent market valuation of RM222.1 million, was negotiated on a willing-buyer, willing-seller basis.

Key Points of the Acquisition

• Asset Details: Five high-specification industrial facilities, comprising single-storey detached factories with two-storey office components and ancillary buildings; total built-up area is 524,077 sq ft.
• Location: i-TechValley in the Southern Industrial and Logistics Clusters (SiLC), Iskandar Puteri, Johor – a prime industrial corridor benefiting from major infrastructure upgrades and proximity to Singapore.
• Completion Timeline: Facilities will be delivered progressively from Q1 2027 to Q1 2028, allowing phased leasing aligned with market demand.
• Yield & Accretion: Projected first-year gross yield of approximately 7.3%, with acquisition expected to be distribution per unit (DPU) accretive upon full-year stabilised income.

Strategic Rationale for Investors

The acquisition advances CLMT’s strategy to scale its industrial and logistics portfolio with high-quality, future-ready assets. CEO Ms Yong Su-Lin emphasized the long-term growth prospects stemming from Johor’s industrial market, which is buoyed by:

• The establishment of the Johor-Singapore Special Economic Zone (JS-SEZ)
• Major infrastructure projects, including the Rapid Transit System (RTS) Link to Singapore
• Demand from advanced manufacturing, logistics, and technology-driven industries

After completion, CLMT’s Johor portfolio will comprise 11 industrial assets with a combined built-up area of approximately 781,937 sq ft, enhancing diversification and operational synergies. The proportion of industrial and logistics assets under management will rise from 7.9% to 11.5%.

Facility Features and Competitive Advantages

• Modern occupier requirements: High floor loading capacities, generous ceiling heights, contemporary façades, loading bays with dock levellers
• Located in a gated and guarded, 170-acre industrial park with 24-hour security, advanced access controls, high-speed broadband, and reliable utilities
• Excellent connectivity: Within 20 minutes’ drive from Tuas Checkpoint, making it highly attractive for Singapore-linked tenants and regional supply chain operators

Financial Impact and Funding

• Financing: Acquisition will be funded via existing debt facilities; only 10% deposit payable upfront, with the balance upon completion.
• Gearing Impact: CLMT’s proforma gearing will rise from 39.8% to 42.2% post-transaction.
• Income Contribution: Expected to contribute income progressively starting from FY ending December 2027, with full impact upon asset completion and stabilization.

Portfolio Overview and Growth Trajectory

CLMT’s portfolio as at 30 September 2025 comprises six retail properties and nine industrial and logistics properties with a total net lettable area of approximately 4.7 million sq ft. Retail assets are strategically located in Penang, Klang Valley, and Kuantan, while the industrial and logistics assets are concentrated in the JS-SEZ of Johor and industrial hubs in Penang and Selangor.

CLMT is managed by CapitaLand Malaysia REIT Management Sdn. Bhd., a subsidiary of Singapore-listed CapitaLand Investment Limited (CLI), a global leader in real asset management with S\$120 billion under management as of November 2025.

Shareholder-Important and Price-Sensitive Information

• Major Portfolio Expansion: The acquisition significantly increases CLMT’s exposure to the industrial and logistics sector, a high-growth area supported by government policy and cross-border economic initiatives.
• Potential DPU Accretion: The deal is expected to be immediately accretive to DPU upon stabilization, which is typically viewed positively by income-seeking investors.
• Leverage Increase: Gearing will increase but remains within regulatory limits, a factor for credit risk considerations.
• Strong Long-Term Growth Prospects: Exposure to high-demand, strategically located assets in Johor’s industrial corridor may drive future NAV and earnings growth.

Conclusion

This acquisition marks a strategic and potentially value-creating move for CapitaLand Malaysia Trust, positioning the REIT to benefit from structural tailwinds in Malaysia’s industrial and logistics property market. Investors should monitor progress on asset completion and leasing, as well as gearing levels, as these will be key drivers for future unit price performance.

Disclaimer: This article is provided for information purposes only and does not constitute an invitation or offer to acquire, purchase, or subscribe for units in CapitaLand Malaysia Trust. The information herein may contain forward-looking statements which are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied. Investors should not place undue reliance on forward-looking statements and should consult their own advisers before making any investment decision. Past performance is not indicative of future results.

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