Tiong Nam, JCorp to develop 300-acre high tech industrial park in Johor

PETALING JAYA: Tiong Nam Logistics Holdings Bhd has entered a joint venture (JV) agreement with JLand Group Sdn Bhd (JLG) to develop a high-tech logistics industrial park on a 300-acre land at Sedenak Technology Valley, Johor.

In a statement, the integrated logistics services providers said its wholly owned subsidiary, Tiong Nam Logistics Solutions Sdn Bhd (TNLS) entered the JV with JLG, a wholly owned subsidiary of Johor Corp.

The industrial park aims to attract foreign and domestic enterprises and serve as a key node in their supply chain management, it said.

The development will comprise ready-built and customised warehouses, factories, and commercial buildings, as well as integrated logistics infrastructure for global businesses.

A JV company – JTN Logistics Park Sdn Bhd (JTN), would be used as the vehicle to undertake the acquisition of the 300-acre land, as well as development and management of the industrial park.

Under the JV agreement, TNLS will a 51% equity stake, while JLG will hold the remaining 49% equity stake in the JV company.

JTN will acquire the development land from JLG for a purchase consideration of RM52.3mil, or RM4.00 per square foot.

Tiong Nam said the land has a leasehold period of 99 years and is currently under the ownership of Johor Corporation, and will be procured by JLG before its sale to JTN.

“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 Southeast Asia.

“The technology-enabled development will also enhance the state’s logistics infrastructure to support greater international connectivity and trade,” Tiong Nam managing director Ong Yoong Nyock said.

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.

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.