The Malaysian property market was set on the backseat burner for the last 2 years. Both sales and volume of property transactions declined. But 2021 came with a fresh set of positive sentiments from property buyers. With gradual recovery from the impact of Covid-19 and the government’s better approach to deal with the pandemic, the industry did fairly well in 2021.
However, not all property sectors are behaving the same post-pandemic. Office and retail properties are less in demand because they are directly affected whenever the country experiences high Covid-19 infection. Offices are shut down or reduced in capacity to curb the pandemic. Retail shops are closed or have to maintain strict SOPs to maintain social distance among the public, affecting business operation.
As such, the industrial sector took centre stage in 2021. It serves the logistics and e-commerce industry that has become highly demandable in the new normal. It is evident in some of the biggest industrial ventures that have taken place in the last year, which is making way for a promising year for industrial properties in 2022.
3 Notable Industrial Ventures In 2021
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Em Hub Sdn Bhd’s Strata Factory, EmHub
Em Hub Sdn Bhd invested RM 818 million in Kota Damansara to build Malaysia’s very first strata factory, EmHub. EmHub is strategically located along Persiaran Surian with excellent accessibility to the New Klang Valley Expressway, Damansara-Puchong Expressway and the soon-to-be-completed Damansara-Shah Alam Elevated Expressway.
Some of its notable amenities include:
- Kota Damansara MRT
- Emporis Kota Damansara
- Dataran Sunway
- Tropicana Gardens Mall
- Thomson Hospital Kota Damansara
- SEGi University
- Sri KDU International School.
The 9.4-acre leasehold industrial site purchased by Em Hub plans to build:
- Six storey building comprising 468 units in 2 blocks.
- The first block known as Hub 1 was launched in 2019 consisting of 234 units.
- 90% of units in Hub 1 have already been sold.
- The second block, Hub 2, consisting of 217 units was launched in the first quarter of 2021.
- The built-up range of the units is between 2,203 to 5,088 sq. ft.
- They are selling at RM 485 psf or at a total price range of RM 1.1 million to RM 4.2 million.
Strata factory gels well with logistics and e-commerce sectors, the hotspot of current businesses. So, even though the project initially struggled to sell the units in 2020 due to Covid-19, the sales ramped up in 2021. The positive response from buyers also inspired the developer to open Hub 1’s premium units in Level 1, named Galleria, for booking after Chinese New Year this year.
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Sime Darby Property’s Industrial Joint Venture with Logos
Sime Darby Property formed a 51-49 joint venture with Logos to build logistic facilities in Malaysia. Their partnership as an Industrial Joint Venture will act as an investment holding company and manager of logistic funds.
On 29 September 2021, its first fund was announced. They aimed to raise RM 850 million from third-party capital partners to execute their plans. Sime Darby has allocated 177 acres in the prime location of Bandar Bukit Raja township in Klang, Selangor for its first project.
They believe the size and scale that they cater to for their customers will contribute to revitalising Malaysia’s global investment market and bring in foreign investments.
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Tiong Nam Logistics Holdings Bhd’s 1 million sq. ft. Warehouse
The last on the list is a significant industrial land transaction by Tiong Nam Logistics Holdings Bhd from Senai Airport City Sdn Bhd. The deal included 62.62 acres of land purchased in Senai Airport City Free Commercial Zone for RM136.38 million.
Tiong Nam plans to use this land to build a 1 million sq. ft. warehouse for Germany’s Daimler AG. This would contribute to the company’s regional after-sales logistics centre and regional distribution hub in Malaysia.
They believe the Centre will play a key part in the group’s supply chain network and distribution site for spare parts in the Asia Pacific region. The facility is expected to be completed by 2024 and will be operated by locally established Mercedes-Benz Parts Logistics Asia Pacific (Malaysia).
