KUALA LUMPUR (June 20): Titijaya Land Bhd’s indirect wholly-owned unit, Aman Duta Sdn Bhd is expected to invest about RM200 million to construct and let a logistics commercial complex on part of land measuring 26,688 square metres in Penang for DHL Properties (M) Sdn Bhd.

In a filing with Bursa Malaysia on Monday (June 20), Titijaya said this followed a build-and-let agreement signed between Aman Duta and DHL on June 15, 2022.

The property developer said the construction of the facility is expected to commence upon obtaining all necessary approvals, and the project is slated for completion in July 2023.

Titijaya said the tenure of the agreement is 10 years, and the rent of tenure for the property and its assets are estimated at RM160 million to RM 210 million.

On March 26, 2022, Titijaya announced that its wholly-owned subsidiary, City Meridian Development Sdn Bhd (CMD), and DHL would develop an 8.09-hectare ultra-modern logistics commercial complex in Bayan Lepas, Penang, primarily to provide semiconductor logistics solution for the electrical and electronics sector.

In its filing on Monday, Titijaya said CMD would retain its role as the property developer, while the build and lease exercises would be carried out by Aman Duta.

“The agreement is not expected to have any effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholdings of the company for the financial year ending June 30, 2022.

“The tenancy of the facility is expected to contribute positively to the group's earnings over the duration of the tenancy,” it said.