Major investment transactions in first quarter up 53% on-year

PETALING JAYA: The value of major investment transactions in Malaysia in the first quarter amounted to RM1.46 billion, a 53% year-on-year (y-o-y) increase, according to Savills Asia Pacific – Q1 2021 Investment Quarterly.

It said the first quarter’s overall transaction value was led by the industrial sector, accounting for 48% of the total, followed by commercial transactions at 22%.

The largest acquisition in the quarter was by Hartalega Holdings, which acquired 250 acres of industrial land in the Kota Perdana Special Border Economic Zone, Kedah, for RM228.7 million. Hartalega intends to invest RM7 billion to build 16 glove factories in Malaysia’s northern region over the next 20 years.

Within Greater Kuala Lumpur, the largest transaction was UEM Land Bhd’s purchase of 9.3 acres of factory land and the buildings on it from Dutch Lady Milk Industries Sdn Bhd in Section 13, Petaling Jaya, for RM200 million with plans to build a RM1.3 billion mixed-use development. This area, specially earmarked for redevelopment into a mixed-use hub as part of urban renewal efforts, has proven to be a popular draw, as this deal was preceded by the sale of the neighbouring former Kickapoo factory, which set new pricing benchmarks in the area, just a few months ago.

Axis REIT entered into an agreement to acquire 7.5 acres of industrial land and buildings from FIW Steel Sdn Bhd for RM120 million. The land is in Bukit Raja, an established industrial location in Shah Alam due to its proximity to Klang Port, coupled with good accessibility and infrastructure. Axis has also acquired two leasehold industrial sites totalling 16.2 acres in Johor for RM75 million, as the fund continues to build on its status as the leading player in Malaysia’s rapidly expanding industrial and logistics sector.

In Kuala Lumpur itself, the most significant transaction was Hex Sdn Bhd’s acquisition of two parcels of leasehold development land measuring 55.5 acres from Medan Prestasi Sdn Bhd, a wholly owned subsidiary of MK Land Group, for RM108.8 million. The disposal of the land will serve to improve MK Land Group’s asset utility, overall financial position, and overall financial liquidity, objectives the company has been focusing on recently by seeking to dispose of some assets.

Source: The Sun Daily