Sunway Real Estate Investment Trust (Sunway REIT) has recently announced its acquisition of an industrial property in Bukit Tengah Industrial Park in Prai, Penang. The property, purchased from Best Corridor Venture Sdn Bhd (BCV) for RM66.8 million in cash, boasts a gross floor area of 307,487 sq ft and is fully tenanted by three reputable multinational corporations (MNCs).
The anchor tenant of the property is Premium Sound Solutions Sdn Bhd, a Belgian sound products manufacturer, along with a Japanese logistics company and an American information management services company. Situated on a 10.4-acre leasehold land with tenure expiring in 2052, Sunway REIT plans to extend the leasehold tenure to 60 years post-acquisition.
Located strategically within the Bukit Tengah Industrial Park, the property is in close proximity to Juru Auto City, Butterworth, and Bukit Mertajam. The acquisition is expected to yield an initial net property income (NPI) of approximately 7.6%, with potential for a 7% NPI yield after factoring in the leasehold extension premium.
Funding for the acquisition will be sourced from Sunway REIT’s existing debt facilities, with completion targeted for the third quarter of 2024. Upon finalization, Sunway REIT’s asset under management (AUM) will reach RM8.9 billion, solidifying its position as the second largest listed REIT in Malaysia.
Sunway REIT Management’s CEO, Clement Chen, expressed enthusiasm for the acquisition, highlighting its contribution to expanding the company’s industrial segment portfolio. This marks Sunway REIT’s third industrial property acquisition, aligning with its TRANSCEND 2027 target to have Services, Industrial & Others segments comprise 20-30% of the property value by 2027.
Chen emphasized the strategic location of the property within Bukit Tengah Industrial Park, its prominent visibility along major highways, and the stability provided by its established MNC tenants. He believes the property holds promising long-term prospects, supported by the influx of investment into Penang, a state that has seen significant growth in manufacturing investments.
In conclusion, Sunway REIT’s acquisition of the industrial property in Bukit Tengah Industrial Park signifies its commitment to diversifying and strengthening its asset portfolio. With a focus on sustainable growth and strategic investments, Sunway REIT continues to position itself as a key player in the Malaysian real estate market.