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Tiong Nam acquires Johor warehouse for RM30 mil

Tiong Nam acquires Johor warehouse for RM30 mil

09 Jun 2021

Tiong Nam Logistics Holdings Bhd is boosting its logistics warehousing capacity by acquiring the owner of a warehouse within Port of Tanjung Pelepas in Johor for RM30 million.

“The inclusion of the new warehouse (in Johor) will increase the group’s warehousing capacity by 2.6% to 6.2 million sq ft, from 6 million sq ft as at March 31,” said Tiong Nam in a statement.

The group said it is buying VM Andaman Sdn Bhd from Kwasa Logistics Sdn Bhd and Goodman SEA Investments No. 1 Ltd.

Tiong Nam managing director Ong Yoong Nyock said the group has registered higher deliveries and warehousing volume across industries for the past few quarters, especially on essential segments such as food and beverage, electrical appliances and IT equipment, spurred by the work from home normality amid the pandemic.

“The strong performance registered by our logistics and warehousing segment is also helped by the increasing trend of companies outsourcing their logistics requirements to specialist providers like us, as they strive to enhance operational efficiency by focusing on their core business and competitive edge.

“Hence, as part of our ongoing warehouse expansion plan, this new warehouse in Johor proves timely, as it allows us to better serve our customers’ logistics and warehousing needs, while also increasing our warehouse capacity to cater for more customers, moving forward,” he said.

Tiong Nam said the warehouse has a market value of RM30.5 million, as ascribed by independent market valuer Burgenns Valuation Sdn Bhd.

The acquisition, it said, is expected to be completed by Sept 8.

Tiong Nam’s share price closed two sen or 2.48% higher at 82.5 sen today, valuing the group at RM424.89 million.

Source: The Edge Markets

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