KUALA LUMPUR (Feb 3): Maxland Bhd (KL:MAXLAND) has inked another 60-year land lease agreement with Kulim Technology Park Corp Sdn Bhd, but this time for land to venture into the district cooling system (DCS) business.

Its wholly owned unit, Maxland Kool Sdn Bhd, entered into the agreement with Kulim Tech Corp to lease a 4.85-acre parcel in Industrial Zone Phase 2 of the Kulim High-Tech Park (KHTP) for RM10.57 million, according to the timber firm’s bourse filing on Monday.

This agreement follows a similar one Maxland inked with Kulim Tech Park Corp in January for a 60-year lease on a 4.57-acre parcel in KHTP for RM9.95 million for the development of a data centre.

However, this time around Maxland, formerly known as Priceworth International Bhd, said Maxland Kool’s lease agreement with Kulim Tech Park Corp is the company’s initial step in its business plan to provide district cooling system services.  

“This is the company’s maiden entry into this industry, as it views the DCS business would provide a steady stream of revenue, as the DCS is provided on bilateral long-term contract between the DCS provider and the consumer on a tariff-based structure,” Maxland said.

“KHTP is an ideal location for the establishment of DCS as the market dynamics in KHTP offer a lot of potential, where most of the leading international semiconductor and printed circuit board companies have a presence, these industries require reliable quality air-conditioning for the production of computer chips, printed circuit boards and electronics components,” it added.

Maxland also noted the DCS will complement the cooling demand of the company’s proposed 20MW data centre to be located beside it.

Shares in Maxland ended unchanged at five sen, valuing the company at RM80.18 million.

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Maxland inks 60-year land lease agreement to set up data centre in Kulim High-Tech Park