EPF invests in the development of a pre-leased logistics hub in Klang
- EPF will invest up to 70% of the capital of the joint venture, ALP BR (Malaysia) Sdn Bhd.
KUALA LUMPUR (6 Oct): The Employees Provident Fund (EPF) is investing in the development of a 100% pre-let logistics center in Bukit Raja, Klang.
In a press release published Thursday, October 6, EPF announced that it had entered into a shareholders’ agreement with Ally Logistic Property Co Ltd. (ALP) for the logistics hub.
EPF will invest up to 70% of the capital of the joint venture, ALP BR (Malaysia) Sdn Bhd. (ALP BR).
The remaining 30% will be held by ALP.
The fund said the hub will be located on 27 acres of freehold land and equipped with ASRS (Automated Storage and Retrieval System) technology, providing increased efficiency and flexibility for tenants.
He said the hub is expected to be completed by the third quarter of 2024, with a gross floor area of over 1.8 million square feet and 100,000 pallet locations in the shared ASRS area.
Once construction is complete, ALP BR will lease the entire warehouse to ALP under a 15-year head lease agreement.
EPF Managing Director Datuk Seri Amir Hamzah Azizan said the asset will provide EPF with the opportunity to invest in top quality logistics assets and generate stable rental income for EPF and the ALP.
“Our selection of ALP as an investment partner for logistics real estate was motivated by ALP’s reputation and knowledge as a global specialist in the sector, with a high quality portfolio.
“This partnership presents a strategic opportunity for EPF to take advantage of the growth of the logistics sector, which is expected to continue to accelerate, further driven by the dynamism of the e-commerce market and the diversification of the supply chain by the main players,” he said.
Meanwhile, ALP co-founder and CEO Charlie Chang said the company sees Malaysia as a starting point to introduce its modern logistics infrastructure.
“Our partnership with EPF will be long term in Malaysia and beyond,” he said.