Capitaland Malaysia Trust Eyes Industrial and Logistic Assets in Johor Amid Positive Economic Sentiments
Capitaland Malaysia Trust (KL) is setting its sights on expanding its portfolio with more industrial and logistic assets in Johor, driven by the region’s robust demand and positive economic sentiments. This strategic move comes after CLMT’s acquisition of three prime freehold ready-built factories in Nusajaya Tech Park, Iskandar Malaysia, for RM27 million in February this year, marking the trust’s entry into the industrial market and its geographical diversification to Johor.
Positive Economic Sentiments and Strong Demand
“Generally, the sentiment on Malaysia, from what I can see and gathered from speaking to investors, has been improving,” said Tan Choon Siang, CEO of the trust’s manager, CapitaLand Malaysia REIT Management Sdn Bhd. “There are several favourable factors such as a good performing equity market and significant foreign investments coming into Malaysia, like data centre development.”
Tan highlighted that property prices in Johor are on the rise due to the excitement surrounding the Johor Bahru-Singapore Rapid Transit System and the government’s push to make Malaysia a manufacturing hub in Southeast Asia. The relocation of companies and manufacturers from China to Southeast Asia has also benefited regions like Penang, which has seen substantial foreign direct investments.
Expansion Strategy Focused on Industrial Assets
While CLMT is keen on expanding its industrial and logistic asset portfolio in Johor, it does not currently plan to acquire retail assets in the region. According to Tan, retail assets in Johor are “underdeveloped” and do not meet the trust’s acquisition criteria.
CLMT’s existing portfolio includes five shopping malls: Gurney Plaza and Queensbay Mall in Penang, Sungei Wang Plaza in Kuala Lumpur, The Mines and 3 Damansara in Selangor, and East Coast Mall in Pahang. These assets highlight the trust’s strong presence in the retail sector across Malaysia.
Market Performance and Future Outlook
At the market close on Wednesday, CLMT’s unit price remained unchanged at 65.5 sen, giving the trust a market capitalisation of RM1.86 billion. The trust’s strategic acquisitions and positive market outlook suggest a promising future as it continues to leverage favourable economic conditions and investor sentiments.
Conclusion
Capitaland Malaysia Trust’s focus on expanding its industrial and logistic assets in Johor reflects a strategic response to the region’s growing economic opportunities and investor confidence. With the ongoing positive economic trends and government initiatives to boost Malaysia’s position as a manufacturing hub, CLMT is well-positioned to capitalize on these developments and enhance its portfolio’s value.
This strategic move is expected to contribute positively to CLMT’s growth and profitability, further solidifying its presence in Malaysia’s dynamic property market.
