Tamadam, ARB sign lease accord

  • Business
  • Friday, 09 Jun 2006

KUALA LUMPUR: Tamadam Bonded Warehouse Bhd has entered into a sale and leaseback agreement with Amanah Raya Bhd (ARB) involving its main warehousing complex in Klang. 

Under the agreement, ARB will buy the warehouse for RM29mil and lease it back to Tamadam for 10 years with a five-year extension option. 

Chairman Tengku Mahmud Tunku Burhanuddin said the resulting capital gain from the sale would be used for working capital, reduce borrowings and for the company's facilities expansion. 

He said Tamadam invested RM10mil to set up the warehouse, known as Tamadam One complex, on a 13-acre site in Klang in 1992. It invested another RM10mil to upgrade the facility and add equipment. 

Tamadam is one of the country’s biggest warehouse operators, providing logistics services including trucking, forwarding and distribution, and servicing to some 300 regular customers. 

ARB managing director Datuk Ahmad Rodzi Pawanteh said the warehouse purchase was in line with the company’s plan to expand its commercial and industrial property investment portfolio to RM800mil by next year from RM180mil now. 

Tengku Mahmud Tengku Burhanuddin (left), Datuk Ahmad Rodzi Pawanteh and ARB chairman Datuk Duusuki Ahmad (right)

Last month, the company sealed an agreement with Silver Bird Group Bhd to buy and lease back the latter’s complex in Shah Alam. 

ARB, a fund management company that originated from a Government will-writing agency, currently manages some RM4.4bil of funds, which are mainly invested in fixed-income instruments and equities. 

“We are also awaiting the Securities Commission’s approval for the listing of ARB’s real estate investment trust,” Rodzi said, adding that he expected the green light by next month. 

ARB reportedly owns 17 properties worth some RM500mil, including its RM60mil headquarters in Jalan Ampang, the Selayang Mall and Holiday Villa Cherating. 

 TAMAD-R :  [Stock WatchTAMADAM :  [Stock Watch]  [NewsTAMADAM-W :  [Stock Watch]

For latest Bursa Malaysia indices, charts and other information click here

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Did you find this article insightful?


Across the site