KUALA LUMPUR: IJM Corp Bhd's wholly-owned subsidiary IJM RE Sdn Bhd has entered into a joint venture agreement with FMM Elmina Sdn Bhd to develop two state-of-the-art logistics hubs in the City of Elmina, Shah Alam.
In a statement, IJM said the two parties had entered into a subscription and shareholders agreement to establish Exio Logistics Sdn Bhd, a special purpose vehicle responsible for the construction and development of the logistics hubs.
IJM will hold a 50% stake in the SPV while the remaining 50% will be held by FMM, a company owned by Tan Sri Teo Chiang Hong, Mettiz Capital Sdn Bhd and Minlon Sdn Bhd.
It said the hubs, constructed on a 22-acre freehold land in the City of Elmina, will have a floor space of 500,000 sq ft and a capacity of 110,000 pallet positions to deliver efficient industrial and logistics solutions with world-class expertise and sustainable green features.
The two hubs, Storio Hub 1 and Storio Hub 2, have already generated substantial interest.
The logistics hubs are fully leased to Storio Sdn Bhd, a company owned by the shareholders of FMM, who will be the operator and master tenant.
"The development of these logistics hubs will be transformative, meeting the growing needs of businesses and shaping the logistics sector.
"Our expansion into the industrial property sector further strengthens our commitment to providing comprehensive solutions across industries," said IJM group CEO and managing director Lee Chun Fai.
He said it would also provide IJM with the opportunity to invest in a prime asset class, securing premium logistics properties that generate recurring lease income.
According to Lee, this development is envisioned to be the first of a series of logistics hubs to meet the increasing demand for efficient supply chain management and logistics services.
The partnership includes the potential for Exio Logistics to explore the development of additional facilities across various locations, including IJM's property land bank portfolio and other suitable areas.
Design and development work for the logistics hub is currently underway and construction scheduled to commence in early 2024.
Meanwhile, IJM said the JV partners have also signed a sales and purchase agreement with Sime Darby Property (City of Elmina) Sdn Bhd for the acquisition of the 22-acre land.