PHB to buy Penang Logistics Hub 5 from Titijaya for RM300m
Pelaburan Hartanah Bhd plans to acquire Penang Logistics Hub 5 from Titijaya Land Bhd for about RM300 million cash. The fully leased complex in Bayan Lepas will boost PHB's industrial portfolio to around 11% of its investment properties.
PETALING JAYA (Oct 28): Pelaburan Hartanah Bhd (PHB) plans to acquire Penang Logistics Hub 5 from property developer Titijaya Land Bhd for approximately RM300 million cash, expanding its industrial portfolio through a conditional transaction expected to generate a RM143 million net disposal gain for the seller.
The purchase of the fully leased complex at Bayan Lepas Waterfront would increase industrial assets to about 11% of PHB’s investment property portfolio, according to a PHB statement.
In a Bursa Malaysia filing on Wednesday (Oct 28), Titijaya said its wholly-owned subsidiaries Aman Duta Sdn Bhd and City Meridian Development Sdn Bhd had signed a conditional sale and purchase agreement with PHB that day. Aman Duta is the vendor and beneficial owner, while City Meridian Development is the registered proprietor. Completion is expected in the first half of 2027, subject to fulfilment of the conditions precedent and barring unforeseen circumstances.
The purpose-built, three-storey logistics complex has approximately 300,726 sq ft of gross floor area, subject to verification through a final site measurement report. The consideration is adjustable based on the final measured area. It occupies approximately 28,562.8 sq m, or 307,447 sq ft (7.06 acres), of leasehold land held under H.S.(D) 26408, Lot 72885, Mukim 12, Barat Daya district, Penang.
Located at No. 2, Persiaran Bayan Lepas, the property’s land lease expires on April 2, 2095. Its tenancy with DHL Properties (Malaysia) Sdn Bhd runs until Oct 14, 2034, with stepped rental increases over the remaining term. PHB said the complex was completed in 2024 and is fully leased to DHL, Berita Harian reported.
Titijaya’s estimated RM143 million net gain, after estimated expenses, is based on the property’s approximately RM156 million net book value as at June 30, 2026. The group said the gain would increase earnings per share by approximately 10.9 sen and be recognised in the financial year in which the disposal is completed. The actual gain depends partly on the final consideration.
Based on its audited June 30, 2026 financial position, Titijaya expects net assets per share to increase from 97 sen to RM1.08 and gearing to decline from 0.18 times to 0.06 times on a pro forma basis. Upon completion, the group will cease receiving rent from the property, partly offset by financing-cost savings.
Under the payment terms, a RM30 million deposit will be held by Aman Duta’s solicitors as stakeholders and released when the agreement becomes unconditional. A further RM246 million is payable within 90 days of that date, including the redemption sum payable directly to the financier. PHB will retain RM24 million, comprising RM15 million linked to defect rectification and RM9 million linked to the tenancy’s novation to the purchaser.
Conditions precedent include approval for the property transfer, execution of a tenancy novation agreement and the final site measurement report with relevant as-built drawings. The conditional period is 90 days from signing, unless extended by mutual written agreement. Titijaya shareholder approval is not required.
PHB group managing director Mazuki Abdullah @ Muhammad said the acquisition would diversify its portfolio and strengthen recurring income, supported by the tenant and lease structure.
