Titijaya Land Bhd plans to invest RM200 million in a modern logistics commercial complex in Penang, which it will subsequently lease to DHL Properties (M) Sdn Bhd for recurrent income.
Aman Duta Sdn Bhd, an indirect wholly-owned subsidiary, would spend the funds and build the properties on an 8.09-hectare plot in Bayan Lepas.
Titijaya told the stock exchange yesterday that Aman Duta and DHL inked a build-and-let agreement on June 15, 2022.
The agreement has a 10-year term, and the rent of tenure for the property and its assets is projected to be between RM160 million and RM210 million, according to the developer.
Over the course of the tenancy, the facility is expected to contribute favourably to the group's profitability, it stated.
The facility's development is set to begin after all relevant approvals are obtained, according to Ttijaya.
Titijaya said the project will be completed in July 2023.
The facility would be outfitted with robotics technologies such as automated storage and retrieval systems (ASRS) and automated guided vehicles (AGVs).
Titijaya announced on March 26, 2022 that its wholly-owned subsidiary, City Meridian Development Sdn Bhd (CMD), and DHL would jointly develop the logistics complex, with the goal of providing semiconductor logistics solutions to the electrical and electronics industries.
In its filing yesterday, it said that CMD would continue to serve as the property developer, while Aman Duta would handle the construction and leasing.