AME in Rm1bil Majestic Builders collaboration

The integrated industrial park will be located in Penang

“The acquisition is consistent with the group’s strategy of expanding its i-parks beyond Johor.” Kelvin Lee Chai

PETALING JAYA: Industrial space solutions provider AME Elite Consortium Bhd is tying up with Majestic Builders Sdn Bhd to develop an integrated industrial park in Penang with a gross development value (GDV) of Rm1bil.

In a statement yesterday, AME Elite said its wholly-owned subsidiary – Northern Industrial Park Sdn Bhd – and Majestic Builders had jointly formed a special-purpose vehicle (SPV) to undertake the industrial park development.

“The prime land is strategically located in Seberang Perai Tengah, Penang, and is easily accessible via the Butterworth-kulim Expressway, first and second Penang bridges, as well as the North-south Expressway,” AME Elite said.

It added that the land was also in close proximity of 15.5 kms to Penang Port.

“This is set to be a high-tech industrial park, with targeted clientele from the logistics solutions, semiconductor, electrical and electronics and medical device manufacturing industries.

“The newly acquired land will be financed via a combination of internally generated funds and bank borrowings.”

AME Elite said it intended to replicate its proven fully-integrated industrial park model in Penang, with custom-built industrial properties amply supported by fit-for-purpose workers’ dormitories.

“AME Elite’s vast expertise includes developing the integrated industrial parks of i-park@senai Airport City and i-park@ Indahpura, which have garnered substantial investments from domestic and foreign investors the likes of Nasdaq-listed Insulet Corp and Hqpack Sdn Bhd, the subsidiary of Netherlands-based high-tech packaging manufacturer HQ Pack BV.”

Additionally, AME Elite said the SPV, Suling Hill Development Sdn Bhd, had also entered into a sale and purchase agreement with Waz Lian Holdings Sdn Bhd to acquire the 175.98acre freehold development land for Rm130mil.

“The acquisition will be satisfied partly via cash amounting to Rm80mil.

“While the remaining consideration of Rm50mil is anticipated to be settled in-kind via industrial properties from the intended industrial park development within 24 months upon fulfilment of conditions of the sale and purchase agreement.”

The proposed acquisition is targetted to be completed by the third quarter of 2023.

AME Elite group managing director Kelvin Lee Chai said the acquisition was consistent with the group’s strategy of expanding its i-parks beyond Johor.

“We anticipate the next seven years to be very exciting for us, as this project with a potential GDV of Rm1bil comes into fruition.”

The Malaysian Investment Development Authority reported that it had approved a total of Rm83.5bil and Rm7.2bil investments in Penang for the financial year ended 2021 and first quarter of 2022, respectively.

This is inclusive of foreign and domestic investments in the manufacturing and services sectors.