THE ISP Group which specialises in logistics warehouses and manufacturing hub and purpose-built workers accommodations has today (Oct 24) inked sales and purchase agreements (SPAs) for four industrial assets with a combined gross floor area close to 850,000 sq ft at a total cost of RM188.5 mil.
To be financed by ISP’s own funds and borrowings, the acquisitions consist of one re-development land and one brownfield site in Johor as well as two brownfield sites in Selangor.
ISP aims to transform these assets into sustainability-oriented logistics warehouses and manufacturing hubs so as to cater to the strong demand for these types of facilities in Malaysia.
The group expects to start renting or leasing these assets by 1Q 2025.
“We expect the demand to lease or rent prime logistic warehouses, especially those located in strategic and highly accessible areas in Malaysia, to remain robust,” commented ISP Holding Sdn Bhd’s founder and group CEO Eric Ng.
“This is due to the country’s strong economic fundamentals and positive growth outlook of key industries including semiconductor, manufacturing, technology (data centres) and logistics.”
Moreover, ISP also believes that rental rates will continue to trend upwards in the foreseeable future as Grade A warehouses and manufacturing hubs are currently in short supply.
“At the same time, the higher construction costs for these types of facilities present a significant barrier to entry,” projected Ng.
At the moment, ISP is focused on ensuring that each of its logistics warehouses and manufacturing hub (LWMH) assets have well-maintained infrastructure, reliable power and water supply, comprehensive transportation networks and are well-equipped with essential amenities.
“This is to assure tenants of uninterrupted operations and peace of mind,” justified Ng. “In embracing our commitment towards sustainability, we’re also working towards obtaining green certifications for all our LWMH assets.”
Following the acquisition of the four new industrial assets, ISP currently has a portfolio of eight LWMH assets with a total gross floor area of 2.3 million sq ft.
“Moving forward, ISP intends to expand its portfolio of LWMH further, primarily focusing on industrial landbanks and properties in Johor and the Klang Valley,” envisages Ng.
“We will also continue to invest to enhance innovation, improve specifications and incorporate sustainable elements within our assets in order to meet the evolving demand of discerning tenants.” – Oct 24, 2024
