Titijaya Land Bhd is disposing of its logistics hub in Bayan Lepas, Penang, to government-linked property investor Pelaburan Hartanah Bhd for RM300 million, in a deal expected to unlock significant value for the property developer.

The proposed disposal price is nearly double the property’s net book value of RM156 million as at June 30, 2026. The transaction is expected to generate a net gain of approximately RM143 million after estimated expenses.

In a Bursa Malaysia filing, Titijaya said its wholly owned subsidiaries, Aman Duta Sdn Bhd and City Meridian Development Sdn Bhd, entered into a conditional sale and purchase agreement with Pelaburan Hartanah on October 26.

The property comprises 7.06 acres of leasehold land housing Penang Logistics Hub 5, a three-storey logistics commercial complex with a gross floor area of 300,726 sq ft. The facility is currently leased to DHL Properties (Malaysia) Sdn Bhd until October 2034.

Titijaya said the divestment aligns with its strategy of selectively monetising completed investment properties at optimal prices, allowing it to unlock asset value and recycle capital into future growth opportunities.

The sale is also expected to reduce the group’s finance costs following the settlement of the remaining borrowings secured against the property. Upon completion, Titijaya’s net assets per share would increase from RM0.97 to RM1.08, while its gearing ratio would decline from 0.18 times to 0.06 times.

Pelaburan Hartanah is owned by Yayasan Pelaburan Bumiputra, a government-linked entity focused on increasing Bumiputera economic participation and wealth creation. Its activities include investment in commercial real estate, property development, and property and asset management.

The proposed disposal does not require shareholder approval and is expected to be completed in the first half of 2027.

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