Property developer OCR Group Berhad is developing its first integrated e-commerce logistics hub via a proposed joint venture with Magna Prima Berhad’s 70% subsidiary Magna Ecocity Sdn Bhd.
Its wholly-owned subsidiary OCR Avenue Sdn Bhd signed a conditional JVA with Magna Ecocity to develop the integrated logistics hub on a 20-acre site in Section 15 in Shah Alam, Selangor. Under the JVA, OCR Avenue, as the project developer, will be responsible for the construction and completion of the proposed project on the leasehold land, belonging to Magna Ecocity.
With a planned GDV of RM1.5 billion, the proposed integrated e-commerce logistics hub is set to be the group’s biggest venture into the CRE segment to date. The proposed development will comprise a mixture of retail and commercial spaces, including multi-storey integrated e-commerce spaces specifically targeted for small and medium-sized enterprises (SMEs) as well as serviced apartments.
The parties are betting on the strategic location for the proposed integrated e-commerce space and expecting its appeal for SMEs. The development is currently in the planning stage and is expected to be launched in phases from 2023 onwards.
Billy Ong Kah Hoe, Managing Director of OCR Group Berhad said: Our maiden integrated e-commerce development is a significant milestone for OCR, and positions us to benefit from the secular strong growth of the e-commerce industry and CRE segment in the market.
For OCR, this development is in line with our sector diversification strategy, which currently mainly features residential properties. With the target launch of our RM750.0 million affordable housing project in Shah Alam by the 2nd half of 2022, the proposed integrated e-commerce spaces will further cement our foothold in the thriving city.”
The proposed JVA will involve a profit-sharing scheme that requires OCR Avenue to pay a total sum of RM160 million as a minimum entitlement or 30% of the development profit (whichever is higher) to Magna Ecocity, upon fulfillment of certain conditions.
