Tiong Nam subsidiary buys land from Senai Airport City for RM136m

KUALA LUMPUR (Aug 6): Tiong Nam Logistics Holdings Bhd’s subsidiary Tiong Nam Logistics Solutions Sdn Bhd (TNLS) is buying two plots of vacant land measuring approximately 20ha (50 acres) and five ha (12.618 acres) respectively in Johor Bahru from Senai Airport City Sdn Bhd for a collective RM136.38 million to construct a warehouse.

In a Bursa Malaysia filing today, Tiong Nam said TNLS had today entered into two sale and purchase agreements with Senai Airport City for the purchase of the two plots of industrial freehold land within Senai Airport City’s Free Commercial Zone.

Tiong Nam said TNLS is purchasing the estimated 50ha and five ha plots of land for RM108.9 million and RM27.48 million respectively.

According to Tiong Nam, the acquisition will be partially financed by the group's internally generated funds and bank borrowings. 

"The acquisition is expected to be completed before Aug 5, 2022,” Tiong Nam said.

According to Tiong Nam, the two plots of land "will be used for the construction of a warehouse with a build-up area measuring 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.

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