PETALING JAYA: Lum Chang Tien Wah Property Sdn Bhd (LCTWP), a joint venture company of Tien Wah Press Holdings Bhd
(TWPH) and Kemensah Holdings Pte Ltd, has entered into an agreement with MyTelehaus Sdn Bhd (MYT) to develop, own, lease and operate a data centre on a portion of its land measuring approximately 1.61 acres in Petaling Jaya, Selangor.
In a filing with Bursa Malaysia, TWPH said the development of a data centre on the land is a viable and attractive opportunity.
It added that the venture is aligned with the long-term strategy of optimising the value of LCTWP’s land assets, given the growing demand for data centre infrastructure, suitable zoning, power availability and the strategic location of its land.
“The proposed Venture with MYT enables LCTWP to collaborate with an established and experienced partner in the fast-growing data centre sector in Malaysia, while retaining ownership of the development land and the data centre structure.
“By leveraging MYT’s technical expertise, operational capabilities and business networks in the data centre industry, the Board notes that the collaboration is expected to create potential synergies and long-term benefits for LCTWP and, indirectly, the group.”
TWPH said the revenue generated from the leasing and operation of the data centre shall be shared between LCTWP and MYT based on their respective cumulative capital expenditure contributions for each completed development phase.
“The revenue sharing ratio in favour of LCTWP is expected to range from 50% at initial operating capacity to 20% upon full phased expansion, as provided in the venture agreement.”
The proposed investment by LCTWP in the proposed venture with MYT will be funded through a combination of LCTWP’s internal funds, bank borrowings and maybe loans from its shareholders, it said.
“The company is expected to contribute approximately RM15.3mil, representing its proportionate share of the loans from shareholders required capital commitment of LCTWP of RM115mil under the proposed venture,” said TWPH.
