CapitaLand Malaysia Trust (CLMT) is accelerating its strategic shift towards industrial and logistics assets, aiming to increase this segment to 20% of total assets under management (AUM) by 2028. Currently, industrial and logistics holdings make up 7.9% of CLMT’s AUM, with acquisitions in Penang, Johor, and the Klang Valley expected to drive gradual growth over the next three years, according to Yong Su-Lin, CEO of CapitaLand Malaysia REIT Management Sdn Bhd.
As part of its diversification strategy, CLMT plans for its industrial and logistics segment to account for around 11.5% of total AUM by Q1 2028, assuming the completion of five industrial properties in Johor currently under development, without further acquisitions. These properties were announced in December 2025 as part of a RM220.8 million acquisition from AME Elite Consortium Bhd, comprising single-storey detached factories with two-storey office components across 17 acres in the i-TechValley industrial park, Iskandar Puteri, with a total built-up area of approximately 524,077 sq ft.
CLMT’s industrial and logistics portfolio currently includes the Valdor Logistics Hub in Penang, Glenmarie Distribution Centre and Synergy Logistics Hub in the Klang Valley, as well as Senai Airport City Facilities and Iskandar Puteri Facilities in Johor. As of end-2025, the industrial and logistics assets were valued at RM433 million, contributing to a total portfolio valuation of RM5.49 billion, with retail assets still forming the core of the trust’s holdings.
Despite the focus on industrial expansion, CLMT remains confident in the outlook for its retail properties, benefiting from Visit Malaysia Year 2026, which is expected to boost tourist arrivals and footfall across key malls.
Yong highlighted that strategically located retail assets are well-positioned to capture this demand, including Gurney Plaza and Queensbay Mall in Penang and Sungai Wang Plaza in the Klang Valley. Additionally, East Coast Mall in Kuantan is expected to gain from Tourism Malaysia’s promotional focus on the east coast.
The anticipated increase in visitor traffic is projected to support rental reversion, building on the positive momentum from FY2025, when CLMT achieved 12.2% rental reversion and maintained a retail occupancy rate of 93.7%. Including its industrial and logistics properties, the overall portfolio occupancy stands at 94.9%, underscoring the trust’s balanced approach across retail, industrial, and logistics sectors.
CLMT’s expansion underscores the growing demand for industrial land in Selangor and well-planned logistics hubs in strategic locations like the Klang Valley and Johor. Investors and occupiers seeking modern facilities will continue to show strong interest in factory developments in Puchong, integrated industrial parks in Subang area, and office space in Bukit Jalil, where proximity to transportation and commercial networks enhances operational efficiency.
This measured diversification positions CLMT to capture both industrial growth opportunities and ongoing retail demand, offering a resilient income base and long-term sustainable returns.
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