KUALA LUMPUR (Oct 28): Titijaya Land Bhd (KL:TITIJYA) is selling its logistics hub in Bayan Lepas, Penang, to government-linked property investor Pelaburan Hartanah Bhd for RM300 million.

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

According to a bourse filing, Titijaya’s wholly owned subsidiaries, Aman Duta Sdn Bhd and City Meridian Development Sdn Bhd, have entered into a conditional sale and purchase agreement with Pelaburan Hartanah on Oct 26.

“The proposed divestment is consistent with Titijaya’s strategy of selectively monetising completed investment properties at the optimum price to unlock value and recycle capital into future growth opportunities," Titijaya said in a bourse filing on Wednesday.

The property comprises 7.06 acres of leasehold land that hosts Penang Logistics Hub 5, a three-storey logistics commercial complex in Bayan Lepas with a gross floor area of 300,726 sq ft.

The logistics facility is currently rented to DHL Properties (Malaysia) Sdn Bhd until October 2034.

Titijaya said the disposal would lower its finance costs after settling the remaining amount of borrowings secured against the asset.

Titijaya's net assets per share rose to RM1.08 from RM0.97 and reduced its gearing ratio to 0.06 times from 0.18 times.

As at end-June, Titijaya has cash and short term deposits of RM115.41 million against bank borrowings of RM226.96 million.

Titijaya said the proposal is not subject to the approval of shareholders and is expected to be completed in the first half of 2027.

Pelaburan Hartanah is owned by Yayasan Pelaburan Bumiputra, which is a government-linked entity that has a stable of companies mandated to increase Bumiputera economic participation and wealth creation. Permodalan Nasional Bhd, Malaysia's largest fund management company, is part of Yayasan Pelaburan Bumiputra's stable.     

Its principal activities include investment holding and investment in commercial real estate assets, participation in property development activities, and property and asset management services.

As at market close on Wednesday, Titijaya shares were up half a sen or 2.38% at 21.5 sen, valuing the company at RM287.8 million. The counter is down 14% over the past one year.