KUALA LUMPUR (Oct 30): AME Elite Consortium Bhd (KL:AME) is working together with Kuala Lumpur Kepong Bhd (KL:KLK) in a joint venture (JV) to develop a new industrial park in Ijok, Selangor. 

The collaboration marks KLK’s inaugural venture into industrial property development and represents an expansion for AME Elite outside of Johor and Penang, where it is a major industrial property developer.  

"This strategic partnership between AME Elite and KLK marks a significant step in our strategic expansion across Malaysia," said AME Elite group chief executive officer Dylan Tan Teck Eng in a joint statement on Wednesday. 

"Selangor is a key growth region for industrial development, and this project will leverage our core strengths in creating sustainable, integrated industrial parks that attract high-value investments," he added. 

AME Elite has previously completed four industrial development projects and is currently developing four more industrial development projects, spanning a total land area of 839.4 acres with an estimated total gross development value (GDV) of approximately RM5.8 billion. 

Apart from one ongoing development project that is located in Penang, all other projects are located in Johor. 

For KLK, its executive chairman Tan Sri Lee Oi Hian said the partnership will allow the group to unlock the value of its property development portfolio in Peninsular Malaysia, as it seeks to levage AME Elite's expertise to ensure a successful expansion into industrial property development.

"Collaborating with AME Elite offers us a unique opportunity to leverage their established expertise in industrial property development, reinforcing KLK Land’s growth initiatives and positioning us for continued success in this new venture," he said in the same statement. 

To kickstart the partnership, the JV company named Oasis Innovation Sdn Bhd (OI) — 60%-owned by AME Elite via AME Industrial Park Sdn Bhd (AMEIP), and 40% by KLK via KLK Land Sdn Bhd (KLKL) — is acquiring two parcels of land in Ijok with a net development area of approximately 151.2 acres from KLK for RM230.54 million cash.

The land, which was previously utilised for oil palm plantation, is located along Latar Expressway near Bandar Seri Coalfields in Sungai Buloh, Selangor.

The proposed development, the statement read, will encompass a comprehensive range of industrial facilities that cater to diverse business needs, with the potential for worker accommodations and commercial components to create a self-sustaining industrial ecosystem.

OI has also entered into a project management agreement with AME Development Sdn Bhd, an affiliate of AMEIP and a wholly owned subsidiary of AME Elite, to manage the project. 

"AME Development possesses the expertise and technical know-how to oversee the construction and development of the project in collaboration with OI," it said. 

Shares of AME Elite were down four sen or 2.45% to close at RM1.59 on Wednesday, with a market capitalisation of RM1.02 billion. 

KLK shares dropped 24 sen or 1.11% to RM21.40 at market close, giving the group a market capitalisation of RM23.52 billion.