Titijaya Land Bhd is selling its Bayan Lepas logistics hub in Penang to Pelaburan Hartanah Bhd for RM300 million, nearly double the property's RM156 million net book value as at June 30, 2026. The disposal is expected to yield a net gain of RM143 million and cut gearing to 0.06 times from 0.18 times. The 300,726 sq ft facility, Penang Logistics Hub 5, sits on 7.06 acres and is leased to DHL Properties (Malaysia) until October 2034. Completion is targeted for the first half of 2027.
According to theedgemalaysia.com, Titijaya Land Bhd is selling its logistics hub in Bayan Lepas, Penang, to government-linked property investor Pelaburan Hartanah Bhd for RM300 million, a price nearly double the asset’s net book value of RM156 million as at June 30, 2026.
The disposal is expected to generate a net gain of RM143 million after estimated expenses, according to a bourse filing cited by the source. Titijaya’s wholly owned subsidiaries, Aman Duta Sdn Bhd and City Meridian Development Sdn Bhd, entered into a conditional sale and purchase agreement with Pelaburan Hartanah on Oct 26.
The company said the proposed divestment fits its strategy of selectively monetising completed investment properties at the optimum price to unlock value and recycle capital into future growth opportunities. The filing was issued on Wednesday, Oct 28.
Asset details and DHL tenancy
The property comprises 7.06 acres of leasehold land hosting Penang Logistics Hub 5, a three-storey logistics commercial complex in Bayan Lepas with a gross floor area of 300,726 sq ft.
The logistics facility is currently rented to DHL Properties (Malaysia) Sdn Bhd until October 2034, giving the buyer a long-dated income stream anchored by a global logistics operator.
“The proposed divestment is consistent with Titijaya’s strategy of selectively monetising completed investment properties at the optimum price to unlock value and recycle capital into future growth opportunities.” — Titijaya, in its bourse filing
Balance sheet impact
Titijaya said the disposal would lower its finance costs after settling the remaining amount of borrowings secured against the asset. Net assets per share rose to RM1.08 from RM0.97, while the gearing ratio fell to 0.06 times from 0.18 times.
As at end-June, Titijaya reported cash and short-term deposits of RM115.41 million against bank borrowings of RM226.96 million, a gap the sale proceeds would help close.
The proposal is not subject to shareholder approval and is expected to be completed in the first half of 2027, per the filing.
Buyer profile and market reaction
Pelaburan Hartanah is owned by Yayasan Pelaburan Bumiputra, a government-linked entity with a stable of companies mandated to increase Bumiputera economic participation and wealth creation. Permodalan Nasional Bhd, described by the source as Malaysia’s largest fund management company, is part of that stable.
Pelaburan Hartanah’s principal activities include investment holding and investment in commercial real estate assets, participation in property development activities, and property and asset management services.
At market close on Wednesday, Titijaya shares were up half a sen, or 2.38%, at 21.5 sen, valuing the company at RM287.8 million. The counter is down 14% over the past one year.
Source: theedgemalaysia.com
Compiled from international media by the SCI.AI editorial team.
