TIONG Nam Logistics Holdings Bhd’s wholly owned subsidiary, Tiong Nam Logistics Solutions Sdn Bhd (TNLS), yesterday entered a joint venture (JV) agreement with JLand Group Sdn Bhd (JLG), a wholly owned subsidiary of Johor Corp, to develop a high-tech logistics industrial park on a 300-acre (121.4ha) land at Sedenak Technology Valley, Johor.

The JV agreement followed on from a preliminary collaboration agreement announced in August 2022 that encapsulated both parties’ commitment to undertake the development, it said in a statement yesterday.

The industrial park aims to attract foreign and domestic enterprises and serve as a key node in their supply chain management. The development will comprise ready-built and customised warehouses, factories, and commercial buildings, as well as integrated logistics infrastructure for global businesses.

A JV company — JTN Logistics Park Sdn Bhd — would be used as the vehicle to undertake the acquisition of the 300-acre land, as well as development and management of the industrial park.

Under the JV agreement, TNLS will hold 51,000 ordinary shares, representing 51% equity stake, while JLG will hold the remaining 49,000 ordinary shares or 49% equity stake in the JV company.

JTN will acquire the development land from JLG for a purchase consideration of RM52.3 million or RM4 per sq ft. The land has a leasehold period of 99 years and is currently under the ownership of Johor Corporation, and will be procured by JLG before its sale to JTN.

JTN will pay the land purchase consideration to JLG through advances from the JV shareholders. Meanwhile, TNLS will be responsible for funding the working capital for the development through internally generated funds.

JTN is expected to prepare and submit the development layout plans to the Johor state authorities within the next 12 months or an extended period to be mutually agreed upon. 

Construction of the logistics industrial park is expected to begin in 2025, or within three years from securing approval for the development layout plan and other relevant authority approvals. — TMR