PNB, KWAP and AREA Group to develop RM1.4 billion industrial and logistics hub
Permodalan Nasional Bhd (PNB), KWEST Sdn Bhd, and the AREA Group of Companies will jointly develop an industrial and logistics hub in Kota Seri Langat, (KSL), Selangor, and aims to attract local players from various industries and multinational companies (MNCs).
The hub, known as COMPASS @ KSL, has a gross development value (GDV) of RM1.4 billion.
COMPASS @ KSL is located within the 809.37 hectare Kota Sri Langat township, which is being developed by PNB Development Sdn Bhd.
The township is located about 10 minutes from Jenjarum and Banting and comprises a good mix of residential, commercial, and industrial properties.
PNB Development acquired the landbank in 1996 from Dusun Durian Plantation Ltd, a subsidiary of Golden Hope Plantations Bhd, which, in 2007, merged with Sime Darby Bhd and Kumpulan Guthrie Bhd to become the world’s biggest palm oil entity.
Between 2001 and 2008, PNB Development had sold parcels of land in Kota Seri Langat totalling 176.04ha to several developers.
One of the biggest land buyers in Kota Seri Langat is Area Management Sdn Bhd. The company acquired an 86ha plot for RM320 million in August 2018, to develop COMPASS @ KSL.
COMPASS @ KSL will be gated and guarded with a fully integrated suite of services for logistics and e-commerce operators, manufacturers, small and medium industries (SMI), as well as small and medium enterprises (SME).
The hub will offer ‘built-to-suit’ warehouses and manufacturing facilities ranging from 100,000 square ft to one million sq ft for sale or lease.
There will be smaller detached factories ranging from 8,000 sq ft to 50,000 sq ft located at the SME precinct within the project that will be ‘built for sale’.
The smaller factories will help meet the demand of SME’s looking to operate from a world-class industrial facility in Klang Valley, said AREA executive chairman Datuk Stewart LaBrooy.
LaBrooy said the AREA team has been working on this opportunity for over four years since the company first identified the potential of the site’s location in 2016.
“We are delighted to have both PNB and KWEST as our partners in the joint venture, LaBrooy said.
“We see this as a start of a journey to build world-class industrial estates to attract future foreign direct investments to Malaysia, which in turn will bring with them employment opportunities for higher-paying jobs for our graduates,” added LaBrooy.
AREA, through its special purpose vehicle AREA Industrial Development Holdings Sdn Bhd, PNB’s indirect wholly-owned subsidiary MIDF Property Bhd and KWEST, which is a wholly-owned unit of Kumpulan Wang Persaraan (Diperbadankan) (KWAP) have inked a JV Agreement to develop COMPASS @ KSL.
PNB president and group chief executive, Ahmad Zulqarnain Onn said in a statement that this partnership is in line with the group’s real estate investment strategy of partnering with leading property players.
Ahmad Zulqarnain said that COMPASS @ KSL’s strategic location will benefit from the strong growth in e-commerce and Malaysia’s unique position in the global supply chain.
In addition, this collaboration with AREA and KWEST will positively contribute to the development of the Kota Seri Langat township, he said.
KWEST chief executive officer, Sufian Abdullah said this collaboration is an important milestone for the company as it has partnered with leading players in the industry to bring to life innovative development projects like COMPASS @ KSL.
“As the property development investment arm for KWAP, we look forward to working closely with PNB and AREA to see the tremendous opportunities in this project realised,” he said.
Source: NST