KUALA LUMPUR (Oct 21): PTT Synergy Group Bhd (KL:PTT) said on Monday that it had signed a 10-year build and lease agreement to provide a fully automated warehouse for RM399.7 million.
According to the bourse filing, the build and lease agreement was signed between the company’s wholly owned subsidiary, Projek Tetap Teguh Sdn Bhd (PROTT) and a multinational corporation (MNC) semiconductor maker based in Penang.
The company said it is not naming the MNC because of a non-disclosure agreement.
“The built-to-suit and lease will be for a period of ten years with a first extended term of five years and second extended term of five years with total lease rental amounting to approximately RM399.7 million for the first ten years,” the company said.
The purpose-built warehouse has a gross built-up area of 416,572.18 sq ft and PTT Synergy is required to provide an automated storage and retrieval system with a capacity of 47,320 pallets.
In terms of prospects, PTT Synergy also said the agreement will enable PROTT to unlock its property value and allow PROTT and the MNC client to participate in the business opportunities in a fully automated warehouse logistics and distribution centre.
“The agreement is a testament to PTTS’s mission to grow its end-to-end warehousing solution business not only in Malaysia but across the Asean region,” it added.
The company also said the execution of the agreement is not expected to have any material effect on its earnings for the current financial year ending June 30, 2025. Nevertheless, expects positive earning contributions in the coming years.
Shares of PTT Synergy settled unchanged at RM1.09 on Monday’s closing, giving it a market capitalization of RM471.06 million.