AME Elite aims to generate more than RM1.5b GDV in newly-acquired Johor land

AME Elite aims to generate more than RM1.5b GDV in newly-acquired Johor land
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KUALA LUMPUR (Dec 30): Integrated industrial space solutions provider AME Elite Consortium Bhd is aiming to generate more than RM1.5 billion in gross development value (GDV) through its 169.8-acre land acquisitions in the Southern Industrial and Logistics Clusters (SiLC) in Iskandar Puteri, Johor Bahru.

In a bourse filing today, AME Elite said its units Pentagon Land Sdn Bhd and Greenhill SILC Sdn Bhd had entered into two sales and purchase agreements with UEM Land Bhd and Nusajaya Heights Sdn Bhd, both wholly-owned subsidiaries of UEM Sunrise Bhd.

The total purchase consideration of the proposed land acquisitions amount to RM434.3 million.

The new lands are located near AME Elite’s i-Park @ SiLC industrial park, which was completed in 2013, and approximately 30 minutes from its ongoing integrated industrial park developments, namely i-Park @ Indahpura and i-Park @ Senai Airport City.

In a separate statement, AME Elite group managing director Kelvin Lee Chai said he is optimistic of the prospects of the new lands, as the group aims to replicate its past successes in industrial park developments.

“The land acquisitions from UEM Sunrise are the precursor to our collaboration towards collectively generating economic benefits, by transforming the parcels of land into a successful gated-and-guarded integrated industrial park.

“We have built a commendable track record via our i-Park developments, generating GDV exceeding RM2.5 billion through the completed i-Park @ SiLC and i-Park @ Indahpura (Phase 1 & 2), as well as ongoing i-Park @ Indahpura (Phase 3) and i-Park @ Senai Airport City developments. Our projects have consistently registered high take-up rates, as we continue to attract various leading domestic and international companies.

“With the new lands, our total landbank would increase to 232.2 acres, allowing us to generate sizeable GDV over the development period. The enlarged scale of developments would extend the sustainability of our earnings even further,” he said.

The acquisitions are subject to AME Elite obtaining approval from shareholders at an extraordinary general meeting to be convened, and UEM Land obtaining consent and approval from the Economic Planning Unit of the Malaysian Prime Minister Department, and any other regulatory approvals required.

AME Elite said the purchase consideration would be fulfilled in tranches until 2024 or later depending on progress of compliance, to be funded via a combination of bank borrowings and internal funds.

Lee said the expansion of the landbank enables continued growth of AME Elite’s industrial park presence in Iskandar Malaysia.

“Iskandar Malaysia also has special economic zone status and is planned to become a major regional economic hub, and we look forward to continuing supporting the region’s long-term aspirations through launching more of our internationally-recognized i-Parks going forward,” he said.

At the midday break, AME Elite dipped 0.82% or two sen to RM2.43, with 221,100 shares traded.