Tiong Nam Logistics Solutions Sdn Bhd (TNLS), a subsidiary of Tiong Nam Logistics Holdings Bhd, is buying two plots of unoccupied land in Johor Bahru for a total of RM136.38 million from Senai Airport City Sdn Bhd to build a warehouse.
Tiong Nam stated in a Bursa Malaysia filing that TNLS has engaged in two sales and purchase agreements with Senai Airport City for the purchase of two plots of industrial freehold land within the Free Commercial Zone of Senai Airport City.
TNLS is buying the estimated 50ha and five ha plots of land for RM108.9 million and RM27.48 million, respectively, according to Tiong Nam.
According to Tiong Nam, the transaction would be largely funded by internally generated funds and bank borrowings, and the acquisition is expected to be completed before 5th Aug 2022.
The two plots of land would be used for the building of a warehouse with a build-up size of approximately 1.09 million sq ft.
The total warehouse construction cost is estimated at RM200.02 million. Tiong Nam Group’s warehouse capacity will be increased upon completion of this warehouse construction.
TNLS will submit the necessary application to the relevant authority for the aforesaid construction upon the completion of the acquisition,” Tiong Nam said.
Tiong Nam’s stock rose two sen, or 2.4%, to 85.5 sen on 5th August 2021, valuing the company at RM451.29 million.
According to Tiong Nam’s most recent annual report, the company has 527.83 million issued shares.