Area buys land from PNB for RM320mil to build hub

The Star Malaysia - StarBiz - - News -

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 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.

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