Titijaya plans RM300 million disposal of Penang logistics property
DHL occupies the facility under a tenancy running until October 2034, while the proposed sale is expected to deliver a RM143 million net gain.
Titijaya Land Bhd plans to divest its Bayan Lepas logistics property to Pelaburan Hartanah Bhd for RM300 million. The company said it anticipates completing the transaction during the first half of 2027, without requiring shareholder approval.
The company disclosed in a bourse filing that Aman Duta Sdn Bhd and City Meridian Development Sdn Bhd, both wholly owned subsidiaries, signed a conditional agreement for the sale on Oct 26.
Known as Penang Logistics Hub 5, the asset includes a three-storey commercial logistics complex on leasehold land measuring 7.06 acres. The building has 300,726 sq ft in gross floor area, with DHL Properties (Malaysia) Sdn Bhd as its tenant until October 2034.
Titijaya put the property's net book value at RM156 million as at June 30, 2026. It estimates that the transaction will yield RM143 million in net gains after expenses.
The company said the divestment would release capital from selected completed investment properties for future growth opportunities. It also expects financing costs to fall following repayment of the remaining borrowings tied to the asset.
Titijaya reported bank borrowings of RM226.96 million at end-June, alongside RM115.41 million in cash and short-term deposits. The buyer, a government-linked property investor, is owned by Yayasan Pelaburan Bumiputra.
