IOI Properties sells Banting industrial land for RM740.68mil
KUALA LUMPUR: IOI Properties Group Bhd is selling three plots of land at its IOI Industrial Park at Banting for RM740.68 million.
The company, via subsidiary Fortune Growers Sdn Bhd, signed on Jan 29 a sale and purchase agreement with Bridge Data Centres Malaysia VII Sdn Bhd.
IOI Properties group chief executive officer Datuk Lee Yeow Seng said Bridge Data's acquisition of 55 hectares to expand data centre operations demonstrates strong confidence in IOI Properties' industrial parks.
"The strategic location of our 130.3ha industrial park with major highways and the near connectivity to Kuala Lumpur International Airport (KLIA) and Port Klang provides a strong factor of choice.
"And by having a complete and ready infrastructure at our IOI Industrial Park at Banting, the burden of setting up has eased," he said in a statement.
Lee said by establishing the IOI Industrial Park series in 2024, IOI Properties is aligned with national development initiatives, including the New Industrial Master Plan 2030.
He added that ongoing collaboration with the Malaysia Investment Development Authority, Invest Selangor, utilities providers and local authorities makes this strategic move timely for the expansion of the group's property development segment.
The IOI Industrial Park Series, which was launched in September 2024, comprises three locations including IOI Industrial Park at Banting.
The 101-hectare IOI Industrial Park at Melaka is in the process of obtaining the relevant approvals, while the integrated 445ha IOI Industrial Park at Iskandar Malaysia, located within the Johor-Singapore Special Economic Zone (JS-SEZ), may expand further due to growing demand and investment.
IOI Properties said while the industrial park sector remains competitive, certain sectors such as logistics and warehousing have seen tremendous growth in Malaysia due to the Straits of Malacca trading route and Malaysia's well-established sea and air ports.
This is including the nation's well-maintained infrastructure, accessibility and international connectivity.
According to research data from Mordor Intelligence, the freight and logistics market in Malaysia is expected to reach US$38.28 billion by the year 2030, which could result in a sharp increase in demand for logistics warehouse space.
Lee said in the pipeline, the group is considering a 500,000 square feet logistic warehousing facility to be built in IOI Industrial Park at Banting and a similar one in IOI Industrial Park at Iskandar Malaysia.
"The facilities may be leased long-term with selected logistic partners.
"This is part of our strategic expansion to strengthen the recurring income portfolio of our property investment segment in the next few years," he added.