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- The sale “highlights the strong market demand for our high-specification facilities and the institutional-grade nature of our industrial parks”.
KUALA LUMPUR (Dec 23): AME Elite Consortium Bhd (KL:AME) is selling five industrial properties in Johor for RM220.8 million cash to CapitaLand Malaysia Trust (KL:CMLT).
The properties comprise five single-storey detached factories with two-storey office components, occupying about 17 acres of land and with a total built-up area of about 524,077 square feet within AME Elite’s i-TechValley industrial park in Iskandar Puteri, the company said in a statement.
The sale “highlights the strong market demand for our high-specification facilities and the institutional-grade nature of our industrial parks”, said AME Elite chief executive officer Dylan Tan Teck Eng.
The deals were signed by AME Elite’s units Pentagon Land Sdn Bhd and Greenhill SILC Sdn Bhd with Mtrustee Bhd, the independent trustee for CapitaLand Malaysia. Under the agreements, the assets will be delivered in stages between 2027 and 2028 in a move-in-ready condition.
i-TechValley spans about 170 acres, is located near the Singapore-Malaysia Second Link and is connected to major highways and ports in the Johor-Singapore Special Economic Zone.
AME Elite said the latest sales allowed the company to exceed its RM400 million sales target for the financial year ending March 31, 2026.
Apart from i-TechValley, ongoing developments include i-Park @ Senai Airport City as well as Northern TechValley @ BKE in Penang. The company is developing a 151.2-acre industrial park in Selangor through a joint venture with Kuala Lumpur Kepong Bhd (KL:KLK).
In a separate statement, CapitaLand Malaysia chief executive officer Yong Su-Lin said the acquisition is in line with the trust’s strategy to grow its industrial and logistics portfolio, which will comprise 11 industrial assets upon the transaction's completion.
“With these high-specification facilities, CLMT is well positioned to capture long-term growth from regional manufacturing expansion and supply chain realignment,” said Yong.
CapitaLand Malaysia will fund the acquisition through existing debt facilities. Following the sale, CapitaLand Malaysia’s pro forma gearing is expected to rise to 42.2% from 39.8%, while income contribution is expected to commence progressively from the financial year ending Dec 31, 2027.
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