The Employees Provident Fund (EPF) and Ally Logistic Property Co Ltd (ALP) have entered into a shareholder’s agreement to develop a 100% pre-leased logistics hub in Bukit Raja in Klang, Selangor.
In a statement, the retirement fund said it would invest up to 70% stake in the joint venture company, ALP BR (Malaysia) Sdn Bhd, while the remaining 30% will be held by ALP.
It said the logistics hub, to be located on 27 acres of freehold land, will be equipped with the Automated Storage and Retrieval System, or ASRS technology, providing increased efficiency and flexibility for tenants.
The hub will have a gross floor area of more than 1.8 million sq ft and 100,000 pallet positions in the shared Automated Storage and Retrieval System zone.
The development is expected to be completed by the third quarter of 2024.
According to EPF CEO Datuk Seri Amir Hamzah Azizan, the asset will provide the EPF with the opportunity to invest in prime-quality logistics assets and generate stable rental income for both stakeholders.
“Our selection of ALP as our investment partner for logistics real estate was driven by ALP’s reputation and knowledge as a global sector specialist, possessing a high-quality portfolio.
“This partnership presents a strategic opportunity for the EPF to ride on the growth of the logistics sector, which is expected to continue to accelerate, further driven by the vibrant e-commerce market and supply chain diversification by major players,” he said.
Meanwhile, ALP co-founder and CEO Charlie Chang said Malaysia is a great starting point to introduce its modern logistics infrastructure due to its appreciation for innovation.
“Our partnership with the EPF will be for the long term in Malaysia and beyond,” he added.