PETALING JAYA: Logistics player Tiong Nam Logistics Holdings Bhd
has partnered with Johor Corp to develop a 300-acre high tech industrial park in Johor.
A joint-venture (JV) company, JTN Logistics Park Sdn Bhd, will acquire the development land from Johor Corp’s subsidiary JLand Group Sdn Bhd (JLG) for RM52.3mil or RM4 per sq ft.
Tiong Nam’s unit, Tiong Nam Logistics Solutions Sdn Bhd (TNLS), will control a 51% stake in the JV company, while the remaining will be held by JLG.
TNLS is responsible for funding the project’s working capital through internally generated funds.
On Dec 28, TNLS and JLG entered into a JV agreement to develop the industrial park at Sedenak Technology Valley. This follows a preliminary collaboration agreement announced in August.
“The industrial park aims to attract foreign and domestic enterprises and serve as a key node in their supply chain management.
“The development will comprise ready-built and customised warehouses, factories, and commercial buildings, as well as integrated logistics infrastructure for global businesses,” said Tiong Nam in a statement yesterday.
The construction of the logistics industrial park is expected to begin in 2025, or within three years from securing approval for the development layout plan and other relevant authority approvals.
Tiong Nam managing director Ong Yoong Nyock said the technology-enabled development would enhance Johor’s logistics infrastructure to support greater international connectivity and trade.
“We are proud to partner with the Johor state’s development institution to jointly develop a pioneering world-class logistics industrial park that is envisioned to attract significant foreign and domestic investments into the state.
“Our JV with JLG is a recognition of our capabilities and a major milestone in our track record in transforming Johor’s logistics landscape over the past four decades.
“We will bring tremendous value to the project which caters to Johor’s strategic goals, by leveraging on our experience as a leading integrated logistics and warehousing services provider to multinational customers across South-East Asia,” said Ong.
The land has a leasehold period of 99 years and is currently under the ownership of Johor Corp, It will be procured by JLG before its sale to JTN.
JTN will pay the land purchase consideration to JLG through advances from the JV shareholders.
The company is also responsible for development and management of the industrial park.
JTN is expected to prepare and submit the development layout plans to the Johor state authorities within the next 12 months or an extended period to be mutually agreed upon.
