Area buys land from PNB for RM320mil to build hub
KUALA LUMPUR: Area Management Sdn Bhd has agreed to purchase 86ha freehold industrial land from PNB Development Sdn Bhd for RM320mil to build an integrated industrial logistics hub in Kota Seri Langat, Selangor.
The hub with a gross development value of RM4bil is expected to be automated and likely to mirror China’s JD.com automated warehousing, offering built-to-suit warehouses and manufacturing facilities as well as residential units.
Both parties signed a deal via their units. Area via a special purpose vehicle, AIDF Industrial Park Sdn Bhd and PNB Development Sdn Bhd’s subsidiary Seriemas Development Sdn Bhd.
PNB Development, a wholly owned unit of Permodalan Nasional Bhd owns 2,000 acres in Kota Seri Langat.
The real estate private equity and advisory firm chairman Datuk Stewart LaBrooy said there were three big third-party logistics companies looking to consolidate their operations in the industrial park.
“Multinational companies are demanding big warehousing for their operations as there is a shortage of new modern logistics warehouses in Selangor.
“The existing warehouses in the country cannot adapt easily to automation as they are smaller in size with lower ceilings and do not have flat floors,” he said.
He said companies would significantly reduce cost as they planned to lease out the space at “competitive lower rentals” allowing companies to spend more on automation.
“We will capitalise on the fact that there is high demand and a shortage of land in the state,” he told reporters here yesterday.
The company aimed to complete the hub’s development within the next five to seven years.
For its expansion plans, Area is in talks with PNB Development to acquire more surrounding land to build the next three phases of the industrial park.