Swift Disposes 12.5% Stake in Global Vision Logistics to IJM

KUALA LUMPUR, January 12, 2024 -- SWIFT HAULAGE BERHAD (“Swift” or “Swift Group”), Malaysia’s largest haulier and leading integrated logistics service provider, announced that it had entered into a Share Purchase Agreement (“SPA”) with IJM RE Sdn. Bhd. (“IJM RE”), a subsidiary of IJM Corporation Berhad (“IJM”) for the disposal of a 12.5% stake in Global Vision Logistics Sdn. Bhd. (“GVL”) for a total purchase consideration of RM44,362,639.00 (“Proposed Disposal”).

GVL, an associate company of Swift, is the project owner and developer of the Shah Alam International Logistics Hub (“SAILH”). Upon completion of the Proposed Disposal, Swift’s ownership in GVL will decrease from 42.5% to 30.0%.

Shah Alam International Logistics Hub: ASEAN’s Largest and First Green-Certified in Malaysia

Establishing Malaysia’s first green-certified logistics hub, SAILH is poised to become one of the largest in the ASEAN region. Strategically located on a 71-acre site in Shah Alam, it provides optimal connectivity to major transportation networks and key industrial areas. 

The first phase, which commenced construction in September last year, comprises a range of facilities: a four-storey warehouse complex, a multi-level parking facility spanning four storeys and a one-storey office, along with ancillary buildings. Set for completion in 2025, this phase will provide a net lettable area of 2.8 million square feet. Plans for the second phase are in progress, which will bring the total warehouse space to approximately 6 million square feet upon completion of all phases. 

SAILH’s commitment to sustainability is demonstrated through the inclusion of eco-friendly features, from the construction phase to operational practices. These include the use of low-carbon building materials, installation of solar panels and the implementation of energy-efficient lighting, elevators and air-cooling systems, alongside efficient water fittings.

Set to meet the evolving needs of the logistics industry, this development is designed to align with key environmental goals. The logistics hub aims to achieve the local GreenRE Silver Rating and is seeking international recognition like the Excellence in Design for Greater Efficiencies (EDGE) Advanced and EDGE Zero Carbon certifications. These efforts are in line with the United Nations Sustainable Development Goals and the World Green Building Council’s commitment to developing energy-efficient buildings, with the goal of exceeding energy needs and moving towards a net zero future.  

Swift Group CEO Statement

Mr. Loo Yong Hui, Group CEO of Swift Haulage Berhad, gives some colour on the rationale for the proposed disposal: “The disposal of GVL marks a strategic move for Swift, unlocking some of the value tied up in the investment will allow proceeds to be put towards working capital and improving our net gearing ratio. Notably, this will also give rise to a gain of approximately RM11 million for Swift and boost our retained earnings.” 

“Upon completion of the disposal, Swift will still retain a 30% stake in GVL as the SAILH is very much a part of our long-term plans and growth strategy. When completed, the SAILH will be a landmark warehouse for Swift and will substantially increase our capacity and capability in providing sustainable and green warehousing solutions to our current and future clients.” 

“Notably, Swift will be the principal logistics provider for the hub. Being the first Green-Certified logistics hub in Malaysia as well as the ASEAN region, this ties in perfectly with the service offerings and expertise of our dedicated green logistics division.”

“IJM has been appointed as the contractor for the first phase of SAILH and is actively engaged in the design and construction of the project. The disposal to IJM solidifies the alignment of interests between the partners, strategically ensuring decisions are made in the best interest of the project.”

Mr. Loo further emphasized, “Most importantly, this disposal paves the way for a highly esteemed and reputable company like IJM Corporation Berhad to come onboard as a consortium partner, contributing to the development of this landmark project. SAILH’s commitment to environmental goals aligns with international standards, and we believe our partnership with IJM will further enhance its success.” 

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