KLANG: Sime Darby Property Bhd (SD Property), Mitsui & Co Ltd (Mitsui) and Mitsubishi Estate Co Ltd (Mitsubishi) have formed a joint-venture (JV) company - SDMIT Development Sdn Bhd (SDMIT) to develop 39-acre industrial land in Bandar Bukit Raja.
SDMIT will invest an initial RM200 million on the project, which is expected to have RM500 million in gross development value.
MBK Real Estate, a subsidiary of Mitsui, will provide build-to-suit (BTS) solutions for facilities at the development.
Located at Bandar Bukit Raja Industrial Gateway, the facilities empower global supply chain players with competitive advantage.
Leschaco (Malaysia) Sdn Bhd, logistics service provider and Sengheng Electric (KL) Sdn Bhd, consumer electronics chain stores will be the first two tenants at the industrial township.
SD Property acting group chief executive officer Datuk Wan Hashimi Albakri Wan Ahmad Amin Jaffri said the tenants have made a fine choice in selecting the township to set up their operations with a minimum of 10-year lease.
“Bandar Bukit Raja Industrial gateway benefits from being in Selangor, the country’s most industrialised and developed state, an economic and manufacturing driven area with excellent business infrastructure and accessibility, with educated and highly skilled population,” he said at the groundbreaking ceremony of Bandar Bukit Raja Industrial Gateway, here yesterday.
He said Selangor is also home to more than 10 strategic industrial parks, thriving cities and townships, helping companies to reinforce their business ecosystem and presence.
Wan Hashimi Albakri said the company is expected to finalise leasing agreement with eight potential players by next year.
“Those players are mainly involve in logistics and warehousing. We are also confident of developing industrial property segment,” he said.
He said the industrial property and logistics development business would provide long term recurring income to SD Property, as the residential and commercial property sectors’s margins are eroded.
Leschaco Malaysia managing director Lothar Lauszat said the company’s business requires very particular design features from a warehouse.
“As these requirements are fully met, the new BTS facility allows us to provide high quality logistics services to our customers and the chemical industry in Malaysia,” he said.
Sengheng Malaysia deputy managing director KC Lim said the company needs timely shipment of goods from warehouse to stores and to customers.
“The gateway’s location close to manor highways and allows us to save on time, ensuring seamless movement of goods to complete our supply chain demand,” he said.
The gateway is also strategically located within proximity to airports, sea ports, and highways, connecting businesses to major administration population and business centres.
Construction for both companies has been planned to begin simultaneously this month with a combined land area of about 10-acre.
The construction of the first two facilities are expected to be completed by third quarter of 2020 with a build-up area of about 385,000 sq ft.
The bespoke Grade A facilities are the first of its kind ready supply chain hub with ready infrastructure including water, power supply and telecommunications.
The customised facilities are expected to match customers’ business requirement to realise efficiency of operation, offering flexible spatial designs for high degree of warehouse customisation, long lease options, and equipped with the latest technology to suit technical and operational needs.