KUALA LUMPUR (Aug 20): S P Setia Bhd (KL:SPSETIA) is collaborating with Taiwan’s Ally Logistic Property Co Ltd (ALP) to develop a smart warehouse campus at Setia Alaman Industrial Park in Klang.
It forms part of the property developer's eco-industrial site masterplan with an estimated gross development value (GDV) of up to RM4 billion.
The 42-acre development will feature two build-to-lease warehouses equipped with automated storage and retrieval systems (AS/RS), one dedicated to cold chain logistics and the other to ambient storage. Together, the facilities will provide about 1.5 million sq ft of floor space with capacity for 150,000 pallet locations.
S P Setia chief operating officer Datuk Zaini Yusuff said the partnership marks a milestone in the group’s industrial development strategy.
“This partnership aligns with our commitment to creating sustainable growth, and we are excited to create a future-ready industrial ecosystem that will attract regional and international tenants," he said in a statement on Wednesday.
"Moving forward, the industrial pillar will be S P Setia’s new growth business pillar,” Zaini added.
As part of a broader diversification strategy, S P Setia said it intends to develop about 1,000 acres of its landbank for industrial purposes, catering to rising demand for green-themed industrial parks and logistics infrastructure.
Founded in 2014, ALP is a smart warehouse developer, specialising in automated warehouses and system integration for e-commerce, fast-moving consumer goods (FMCG) and third-party logistics players.
"Our partnership with S P Setia is a significant step toward delivering next-generation logistics infrastructure in Malaysia. We aim to leverage our logistics real estate expertise and in-house technology to deliver one-stop smart solutions through OMEGA," ALP's co-founder and chief executive officer Charlie Chang said.
S P Setia added that the project is expected to enhance Setia Alaman’s positioning as a strategic business hub, drawing tenants from regional and international firms involved in industrial technology and logistics.
S P Setia reported a net profit of RM99.80 million for the second quarter ended June 30, 2025 (2QFY2025), down 66.2% from RM295.03 million a year earlier, as revenue declined 36.8% year-on-year to RM943.73 million from RM1.49 billion. This was due to lower contributions from its development projects in Australia and Vietnam, and an RM407 million shortfall in land sale income.
Shares in S P Setia closed unchanged at RM1.09 sen on Wednesday, giving the group a market capitalisation of RM5.45 billion. The counter has declined more than 20% year-to-date.