Harrisons is buying industrial land in Kot Kinabalu Sabah via its wholly owned Jantoco from BHICSE, for a total cash consideration of RM18.8 Million.
Jantoco has agreed to purchase a parcel of leasehold land measuring 9.782 acres known as Lot 6, Industrial Zone
7 (IZ7) Kota Kinabalu Industrial Park in Kota Kinabalu, Sabah. The company is a wholly owned subsidiary of Harrisons and is principally engaged in letting out property and collection rentals from the property and dealing with property management and investment.
BHICSE on the other hand is involved in heavy engineering, ship repair, and shipbuilding, fabrication of steel structures, and marine engineering and is wholly owned by Boustead Penang Shipyard Sdn. Bhd., which in turn is a wholly-owned subsidiary of Boustead Heavy Industries Corporation Berhad.
The Property is located north of Kota Kinabalu, the capital of Sabah, 7 km from Sepangar Bay Container Port Terminal, 20 km from City Center, 25 km to Kota Kinabalu International Airport and 22 km to Railway Tanjung Aru Terminal. Kota Kinabalu Industrial Park (KKIP) is a state government project that has been designated as the nucleus of growth for the state. Its purpose is to facilitate both economic development as well as the optimum utilisation of the state’s natural resources.
The area consists of 8,320 acres, and falls within the Knowledge Corridor of Sabah, where the highly advanced Universiti Malaysia Sabah (UMS), Universiti Teknologi MARA (UiTM) and a host of training and research institutions are located.
Harrisons intends to construct its own warehouse on the property. Currently, Harrisons’ trading and distribution activities in Kota Kinabalu are being housed at five warehouses located in Kota Kinabalu with aggregated gross warehouse areas of
approximately 197,000 sq. ft, which are rented from third parties.
Through the proposed acquisition, the group will restructure and consolidate the rented warehouses into this property, with the intention of reducing operational costs and improving warehousing efficiencies.
