PETALING JAYA: Tiong Nam Logistics Holdings Bhd’s wholly-owned subsidiary, Tiong Nam Logistics Solutions Sdn Bhd, has entered a joint venture (JV) agreement with JLand Group Sdn Bhd, a wholly-owned subsidiary of Johor Corp, to develop a high-tech logistics industrial park on a 300-acre land at Sedenak Technology Valley, Johor.
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 customized warehouses, factories, and commercial buildings, as well as integrated logistics infrastructure for global businesses.
A JV company, JTN Logistics Park Sdn Bhd would be used as the vehicle to undertake the acquisition of the 300-acre land, as well as the development and management of the industrial park. Tiong Nam will own 51% while JLG will hold the remaining 49% equity stake in the company.
The JV company will acquire the development land from JLand for RM52.3 million or RM4.00 per square foot. The land has a leasehold period of 99 years and is currently under the ownership of Johor Corp, and will be procured by JLG before its sale to JTN.
Tiong Nam Logistics Holdings Bhd managing director Ong Yoong Nyock said the logistics industrial park is envisioned to attract significant foreign and domestic investments into the state.
“We will bring tremendous value to the project which caters to Johor’s strategic goals. The technology-enabled development will also enhance the state’s logistics infrastructure to support greater international connectivity and trade,” said Ong.
The JV company will pay the land purchase through advances from the JV shareholders. Meanwhile, Tiong Nam will be responsible for funding the working capital for the development through internally generated funds.
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.
This JV agreement followed the preliminary collaboration agreement announced in August 2022.
