KUALA LUMPUR (Aug 13): Integrated logistics service provider Tri-Mode System (M) Bhd is acquiring a parcel of land measuring 234,432 sq ft for RM15.94 million to expand its warehouse in Pulau Indah Industrial Park (PIIP).

Tri-Mode said it plans to build a 150,000 sq ft warehouse on-site in the next one or two years in view of the overwhelming demand for warehouse services currently.

The group had just moved into a new headquarters in PIIP in March 2021, where its newly built 85,485 sq ft warehouse already reached 100% occupancy. An expansion of additional 28,000 ft at the HQ is under construction, it said.

"The land is strategically located, close to major seaports such as Northport and Westport, situated in an established industrial area with good infrastructure and connectivity.

"The construction of a new warehouse/distribution hub will be subject to the approval from the Klang Land and District Office for the construction plan with an estimated cost of construction of about RM25 million," it said.

"Hence, the total investment for the proposed new warehouse/distribution hub will be approximately RM42 million, which will be funded via a combination of internally generated funds and bank borrowings at this juncture," it added.

Tri-Mode today entered into a conditional sale and purchase agreement with Central Spectrum (M) Sdn Bhd for the land acquisition. The acquisition cost is approximately RM68/sq ft, versus the initial advertised price of RM75/sq ft, it said.

"The total investment cost for the land will be approximately RM17 million after ancillary expenses, such as stamp duties and legal fees," it added.

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