This article first appeared in City & Country, The Edge Malaysia Weekly on December 23, 2024 - December 29, 2024

Lion Group’s property division, Lion Group Property, is looking to expand its industrial park portfolio, says the conglomerate’s executive chairman Tan Sri William Cheng.

Having built a wide range of properties, Lion Group Property is known especially for its mixed-use development, Bandar Mahkota Cheras, in Selangor, and is now one of the major industrial park developers in the country. It has completed five projects — Lion Industrial Park, Shah Alam; Taman Perindustrian Mahkota, Beranang; and Banting Industrial Park in Selangor, as well as Cheng Industrial Estate and Melaka Technology Park in Melaka.

Anticipating a bright future for the industrial sector, it had shifted its attention to industrial park offerings before the outbreak of Covid-19. The decision has proven to be the right one, as Malaysia is now an industrial hot spot among international investors.

Its ongoing and upcoming developments, both industrial and non-industrial, involve a combined land size of more than 3,000 acres. Only about 400 acres are non-industrial offerings.

Currently, the industrial park portfolio accounts for 80% of the property division’s revenue. Its flagship offering is the ongoing freehold Banting Industrial City (BIC) in Selangor.

Officially launched in 2019 with a gross development value (GDV) of RM2.2 billion, BIC spans 1,253 acres. It has a mix of medium and heavy industrial land, commercial land and shopoffices catering for the high technology and heavy manufacturing industries. Individual land sizes start from 1.2 acres, with selling prices ranging from RM85 to RM95 psf.

More than 60% of the land has been sold to date. The buyers include ND Paper Malaysia (Selangor) Sdn Bhd, Jingxing Holdings (M) Sdn Bhd, Zhejiang Jingxing Paper, Tenpower Malaysia Sdn Bhd, INTCO Malaysia Sdn Bhd and Hartalega NGC Sdn Bhd.

“The seven-phase BIC is down to its final stages, with two phases awaiting DO (development order) approval. To date, we have completed essential infrastructure, including a 132ft main road from Jalan Banting, two bridges, water tanks, a sewage treatment plant, pump houses, substations and other vital amenities. As BIC’s master developer, we provide fully converted industrial land equipped with comprehensive infrastructure for seamless operation,” Cheng tells City & Country in an interview.

“The two phases are Phases 2E and 2F, with gross areas of 195.93 acres and 189.13 acres respectively. We are hopeful that the DO approval can be obtained by the end of this year. Besides industrial plots, we also have commercial plots in these two phases. Our expected GDV for these two phases is about RM900 million,” he adds.

Situated just 500m from the newly opened West Coast Expressway (WCE), BIC will also have easy access to natural gas, which investors can use as energy supply. It is close to Langat River, where underground water resources provide an alternative water source, further enhancing sustainability and reliability management.

“With the group’s strong presence in China that dates back to the 1990s, we have cultivated a network that has propelled BIC’s early success. Even before our official launch in 2019, two major manufacturers reserved their plots in advance, which is clear evidence of the trust and confidence BIC inspires,” Cheng says, adding that he is confident BIC will be fully sold in the next two years due to its proximity to infrastructure, strategic location and investor-focused designs.

To create a thriving commercial ecosystem within BIC, the developer is looking to launch Mahkota 28 — a commercial hub offering 28 double-storey shopoffices with a GDV of RM40 million — soon. It will provide a space for businesses and services that complement and support the industrial community.

A typical shopoffice here has a land area of 3,480 sq ft and a built-up of 3,850 sq ft, with a selling price of RM1.38 million. Some 20% of the units have been taken up.

Cheng hopes to make BIC a landmark industrial park that fosters robust industrial ecosystems, stimulates local job creation and supports economic development.

“BIC holds strategic significance for our company, representing a major milestone in our commitment to creating high-quality, sustainable industrial developments. It strengthens our position as a pioneer developer of specialised industrial parks, catering for high-tech heavy manufacturing sectors that drive economic growth and innovation,” he says.

“Through BIC, we aim to establish a thriving industrial hub that not only meets the unique needs of our investors but also adds long-term value to the surrounding community and economy. This project embodies our vision of integrated, infrastructure-rich developments that facilitate seamless operations for major industries, contributing to Malaysia’s reputation as an attractive destination for local and international investments.”

Lion Group Property still has a massive land bank in Banting, according to Cheng. Its latest industrial park there, known as Mega Industrial Park 1 (MI-1), sits on 237 acres and has a GDV of RM1 billion. He says local agents have been apprised of the opening of the new industrial park.

The land was initially reserved for expansion of Lion Group unit Megasteel Sdn Bhd’s factory, which occupies a portion of it. Megasteel was once the largest producer of flat steel products in the country.

Therefore, MI-1 — which will be targeting heavy industrial manufacturers — will leverage on the foundation laid for the steel-making operation, namely the natural gas and underground water access. For example, Cheng says investors will benefit from a ready electricity supply of up to 1,000MW from the group’s 275kV substation — the group has a public distribution licence — ensuring reliable power for all manufacturing operations.

“In addition to this energy capacity, MI-1 offers essential infrastructure that includes gas pipelines, underground water sourced via tube wells and well-developed road connections. Furthermore, MI-1’s proximity to the upcoming Morib Beach landing port opens up opportunities for international fibre connectivity, enabling seamless digital integration with global networks,” he adds.

“With these major infrastructures in place, MI-1 stands out as an excellent option for investors seeking almost-immediate occupancy to build their manufacturing facilities or data centres. It is also strategically positioned to serve supply chain investors looking to support the surrounding industries in Banting.”

At the same time, the developer is also working on the nearby Semanja Langat Business Park. In a collaboration with plantation and property development player Yuwang Group, the upcoming RM640 million, 153-acre industrial park will feature a diverse mix of industrial components, including heavy, medium and light industrial land, as well as customisable facilities like semi-detached and cluster-built factories.

Cheng says the group is awaiting planning approval and seeks to launch the park next year.

“As we continue to drive industrial growth, we are also unlocking the potential development of another 1,000 acres in Banting, expanding our footprint and further supporting Malaysia’s industrial sector.”

Lion Group Property is also developing several non-industrial projects. In the Klang Valley, it is partnering with Menteri Besar Selangor Incorporated on a mixed-use development on a 26.29-acre tract in Seksyen 24, Shah Alam.

At its Malim Jaya Town Centre in Melaka, it launched premium shopoffices, which will sit on a 0.78-acre plot, in October last year. To be completed in 2026, the 16 shopoffices, which are targeted at small and medium enterprises that want to operate in a mature integrated commercial hub, have built-ups starting from 2,400 sq ft (land area: 1,540 sq ft). Eleven have been sold so far.

To address the increasing demand for quality housing and commercial hubs, the company is in the midst of planning future phases at Bandar Mahkota Cheras (18.88 acres), Taman Supreme (20.44 acres) and Bandar Bukit Mahkota (25.85 acres) in the Klang Valley; Mahkota Hills (261.24 acres) in Negeri Sembilan; and Tiara Melaka (36.2 acres) and Lion City Mall Melaka (20.4 acres) in Melaka.

The group also plans to venture into Phnom Penh, Cambodia, to develop mixed-use development Lion City Gateway @ Cambodia. The 40,618 sq m development will be located opposite Phnom Penh International Airport.

With its massive land bank, Lion Group Property continues to be positive about the prospects of industrial offerings in Malaysia. Meanwhile, it has not forgotten the importance of diversification, developing non-industrial projects and venturing overseas.

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