Integrated industrial space solutions provider AME Elite Consortium Berhad (AME) has acquired 169.8-acre land in The Southern Industrial and Logistics Clusters (SiLC) in Iskandar Puteri, Johor Bahru.
Two sales and purchase agreements have been signed between the wholly-owned subsidiaries of AME, Pentagon Land Sdn Bhd and Greenhill SILC Sdn Bhd, and UEM Land Berhad and Nusajaya Heights Sdn Bhd, both wholly-owned subsidiaries of UEM Sunrise Berhad.
The total purchase consideration of the land acquisitions amounted to RM434.3 million. Through this acquisition, AME is targeting to generate more than RM1.5 billion in Gross Development Value (GDV).
AME’s Group Managing Director Kelvin Lee Chai is optimistic about the prospects of the new lands as the Group aims to replicate its past successes in industrial park developments.
“The land acquisitions from UEM Sunrise are the precursor to our collaboration towards collectively generating economic benefits, by transforming the parcels of land into a successful gated-and-guarded integrated industrial park.
With the new lands, our total landbank would increase to 232.2 acres, allowing us to generate sizable GDV over the development period. The enlarged scale of developments would extend the sustainability of our earnings even further,” Kelvin said.
The acquisitions are subject to the approval of AME by the shareholders at the special general meeting to be convened, and the approval of EMU Land Berhad by the Economic Planning Unit of the Malaysian Prime Minister’s Department and any other regulatory approvals required.
The purchase consideration would be fulfilled in tranches until 2024 or later dependent on the progress of compliance, to be funded via a combination of bank borrowings and internal funds.
“The expansion of our landbank enables the continued growth of our industrial park presence in Iskandar Malaysia, which is one of the key economic growth centre in Peninsular Malaysia and situated adjacent to Singapore.
Iskandar Malaysia also has special economic zone status and is planned to become a major regional economic hub, and we look forward to continue supporting the region’s long term aspirations through launching more of our internationally-recognised i-Parks going forward,” Kelvin concluded.