(From left) Tan Yang Cheng, Datuk Edward Chong, Edward Heng, Lee Chun Fai, Tan Sri Teo Chiang Hong, Datuk Michael Tang, Choong Kar Weng, and Sofiyan Yahya at the signing of the shareholders agreement between IJM and FMM Elmina. (Picture courtesy of IJM Corp)

KUALA LUMPUR (July 17): IJM Corp Bhd said its wholly-owned subsidiary IJM RE Sdn Bhd inked a joint-venture (JV) agreement with FMM Elmina Sdn Bhd to develop two logistics hubs in City of Elmina, Shah Alam.

Both firms entered into a subscription and shareholders agreement (SHA) to establish a 50:50 special purpose vehicle (SPV) named Exio Logistics Sdn Bhd, which is responsible for the construction and development of the hubs, said IJM in a statement.

FMM Elmina was formed by property developer and hotelier Tan Sri Teo Chiang Hong, Datuk Michael Tang Vee Mun’s investment holding company Mettiz Capital Sdn Bhd, haberdashery product wholesaler and property developer Minlon Sdn Bhd, as well as Elmina Holdings Sdn Bhd, for the purpose of developing the logistics hubs at City of Elmina.

Interestingly, the two logistics hubs will be fully leased to their master tenant Storio Sdn Bhd, an automated warehouse operator that is headquartered at Wisma Minlon.

Design and development work for the logistics hubs are currently underway with construction scheduled to commence in early 2024, it said.

Meanwhile, the JV partners have also signed a sale and purchase agreement with Sime Darby Property (City of Elmina) Sdn Bhd for the acquisition of the 22-acre land in City of Elmina.

The two hubs, namely Storio Hub 1 and Storio Hub 2, have a combined floor space of 500,000 square feet and a capacity of 110,000 pallet positions, which will be constructed on a 22-acre freehold land in Elmina.

The hubs will also employ automated storage and retrieval system (ASRS) technology alongside automated guided vehicles (AGVs) to reduce carbon footprint through optimised operations.

IJM also said that the partnerships included the potential for Exio Logistics to explore the development of additional facilities across various locations including IJM’s property land bank portfolio and other suitable areas.

“This partnership offers a strategic opportunity for the JV to capitalise on the strong market demands of the logistics sector, fuelled by the thriving e-commerce market and supply chain diversification,” said Lee Chun Fai, IJM’s group chief executive officer and managing director.

He also said that IJM’s expansion into the industrial property sector further strengthens the group’s commitment to providing comprehensive solutions across industries.

“Additionally, it provides IJM with the opportunity to invest in a prime asset class, securing premium logistics properties that generate recurring lease income,” said Lee.

Teo opined that by combining the respective strengths and expertise of each partner, the JV partners are poised to “create a new benchmark in the logistics industry, which will see us deliver a state-of-the-art logistics solution for the Malaysian market.”

“Our shared goal is to deliver exceptional solutions and value to our customers, while driving operational efficiency, cost-effectiveness and sustainability. Together, we are excited to propel the industry forward,” he remarked.

IJM’s share price gained two sen or 1.3% to close at RM1.53 on Monday (July 17), giving it a market capitalisation of RM5.58 billion.