Tiong Nam acquires lands in Johor Bahru to expand warehouse

By ANIS HAZIM / Pic source tiongnam.com

TIONG Nam Logistics Holdings Bhd via a wholly-owned subsidiary, Tiong Nam Logistics Solutions Sdn Bhd (TNLS) entered into two sales and purchase agreements with Senai Airport to purchase two plots of vacant land for cash consideration of RM136 mil.

In a filing to Bursa Malaysia on Friday Tiong Nam said the lands are located in Tebrau, Johor Bahru.

It said that the lands measured with an aggregate size of 62.618 acres (2.73 million sq ft) in total, all within a free commercial zone in Senai Airport City.

“The lands will be used for the construction of a warehouse with a build-up area measuring approximately 1.09 million sq ft.

 The total warehouse construction cost is estimated at RM200 million. The group’s warehouse capacity will be increased upon completion of the construction,” Tiong Nam stated.

The acquisition is expected to be completed before Aug 5.

“The acquisition will not have any material effect on the earnings per share, net assets per share, share capital and substantial shareholders’ direct and/or indirect shareholding of Tiong Nam for the financial year ending March 31, 2022 (FYE22),” it added.