KUALA LUMPUR, January 12, 2024 -- IJM Corp Bhd has signed a share sale agreement via its fully-owned subsidiary IJM RE Sdn Bhd, with logistics provider Swift Haulage Bhd and Hartamas Mentari Sdn Bhd, to acquire a 25% stake in Global Vision Logistics Sdn Bhd (GVL), according to a press statement on Friday.
For context, GVL is a joint venture company between Swift Haulage, Hartamas Mentari and other shareholders. GVL is the developer of the Shah Alam International Logistics Hub (SAILH) in Selangor.
IJM Corp group chief executive officer and managing director Lee Chun Fai said in the statement: “Our investment in GVL and SAILH is a strategic move to address the increasing demands of the logistics sector, spurred by e-commerce growth and supply chain diversification”.
“This decision not only expands IJM’s industrial property portfolio, focusing on high-value assets that generate recurring income, but also reflects our expertise in infrastructure and construction. By integrating our investment strategies with hands-on project execution, we are enhancing our ability to meet diverse industry demands, further establishing IJM as a versatile solutions provider across diverse industries,” Lee added.
At a glance
- Company
- IJM Corp Bhd
- Announcement
- Acquisition
- Location
- Kuala Lumpur, Malaysia
Key figures
- Stake in Global Vision Logistics
- 25%
- Site area
- 71-acre
- First-phase space
- 2.8 million sq ft
- Planned completion of first phase
- 2025
- Expected total warehouse space
- about six million sq ft
- Construction contract
- RM653.6 million
People
- Lee Chun FaiIJM Corp group chief executive officer and managing director
- Oh Kim SunGlobal Vision Logistics chairman
Products and programs
The statement said SAILH is set to become one of Asean’s largest and Malaysia’s first green-certified logistics hub. Spread across a 71-acre site in Shah Alam, the first phase of SAILH, which commenced construction in September last year, will offer 2.8 million sq ft of space including a four-storey warehouse complex, multi-level parking and office space with ancillary buildings.
The first phase is slated to be completed in 2025, while plans for the second phase are underway. The logistics hub is expected to have a total warehouse space of about six million sq ft when all phases are completed.
SAILH will also be designed with eco-friendly features such as low-carbon building materials and energy-saving systems. The development is expected to receive Excellence in Design for Greater Efficiencies (EDGE) Advanced and EDGE Zero Carbon certifications, as well as a GreenRE Silver rating.
Representing GVL, its chairman Oh Kim Sun said, “IJM’s investment in GVL is a key milestone for us. Partnering with an industry leader like IJM brings valuable resources and expertise, as well as showcases confidence in our vision. IJM’s deep understanding of our business, customer universe and the evolving logistics sector enhances our growth potential. Together, we look forward to working closely with IJM to set new benchmarks in the logistics sector”.
Additionally, the statement also highlighted that IJM’s SAILH investment follows an RM653.6 million construction contract won by its construction arm, IJM Construction, in June last year. The investment in SAILH is also part of IJM’s broader strategy to expand into the industrial property sector, complementing its other investments in Exio Logistics Sdn Bhd for two logistics hubs in the City of Elmina, Shah Alam and in the Malaysia China-Kuantan Industrial Logistics Park.
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In brief
IJM Corp Bhd, through its wholly owned subsidiary IJM RE Sdn Bhd, has agreed to acquire a 25% interest in Global Vision Logistics Sdn Bhd, developer of the Shah Alam International Logistics Hub in Selangor. The company says the investment supports its expansion in industrial property and follows a construction contract for the hub awarded to IJM Construction. The project’s first phase covers 2.8 million sq ft of space and is slated for completion in 2025; plans for a second phase are underway. When complete, the hub is expected to have about six million sq ft of warehouse space. The development is planned to include energy-saving systems and low-carbon materials, and is expected to receive several environmental certifications and ratings.
Key takeaways
- IJM RE agreed to acquire a 25% stake in the hub’s developer, Global Vision Logistics.
- The first phase is planned to provide 2.8 million sq ft and is slated for completion in 2025.
- The hub is expected to have about six million sq ft of warehouse space across all phases.
- IJM says the investment is part of its broader expansion into industrial property.
