IOI Properties plans more industrial parks as it eyes 20% revenue contribution from the segment

• IOI Properties group chief operating officer Teh Chin Guan: "With three industrial parks, including one under planning, in industrial growth areas such as Johor, Selangor and Melaka, I am confident that the launch of the IOI Industrial Park series readily positions the group as one of the premiere industrial developers in the country.”

PUTRAJAYA (Sept 12): IOI Properties Group Bhd (KL:IOIPG) is going to launch its IOI Industrial Park at Banting, Selangor by the second quarter of next year and is planning another one in Melaka that is expected to be launched two quarters later.

This means the group will have three industrial parks by the end of 2025, as it has an existing industrial park in Iskandar Malaysia, Johor, which it targets will contribute up to 20% of the group's annual revenue.

Based on its RM2.06 billion total revenue for its financial year ended June 30, 2024, this will mean a contribution of up to RM400 million a year, according to IOI Properties group chief operating officer Teh Chin Guan.

"With three industrial parks, including one under planning, in industrial growth areas such as Johor, Selangor and Melaka, I am confident that the launch of the IOI Industrial Park series readily positions the group as one of the premiere industrial developers in the country,” he said at the launch of the IOI Industrial Park series on Thursday.

Asked if there will be any data centres at its industrial parks, Teh said the group has received “quite a few enquiries” from data centre players for its industrial parks in Banting and Iskandar Malaysia.

“Hopefully we can have some good news in the next one or two months,” he added.

The group's new industrial park plan in Melaka will have an initial allocation of 200 acres out of its 800-acre land bank in the state. Teh said the decision to have an industrial park there aligns with rising investor interest in Melaka's industrial sector, with numerous international players already in operation within the state.

“Our presence here will round out our portfolio while carrying the IOI Industrial Parks series' distinctive hallmarks of strategic location, connectivity and well-thought-out master planning," Teh said.

“Melaka is at the centre between Selangor and Johor, so it will serve us as a very good [industrial hub] for warehousing, logistics, and food and beverages (F&B) central kitchen,” he added.

Looking ahead, Teh said that the group also has sizeable land bank in Bahau, Negeri Sembilan and Segamat, Johor, which may also be turned to industrial parks.

“We hope to have another two more [industrial parks] in the next three to five years,” he said.

Meanwhile, the group has expanded its IOI Industrial Park at Iskandar Malaysia to 1,100 acres by rezoning part of the group's existing 5,000-acre land bank in Johor, after its first phase of semi-detached and detached factory units were fully sold out.

IOI Properties is now launching the 200-acre second phase of the Iskandar Malaysia industrial park, comprising semi-detached factories, build-to-suit factories and land parcels, with an estimated gross development value (GDV) of RM800 million. 

The industrial park is located in Kulai, with connectivity to major land, air and sea terminals, providing accessibility to Singapore's network of sea ports, along with connectivity to the North-South Expressway, Malaysia-Singapore Second Link and Senai-Desaru Expressway. 

As for the IOI Industrial Park at Banting that spans 322 acres with an estimated total GDV of more than RM1.5 billion, the group is offering 53 clusters of semi-detached and stand-alone factory units in its first 70-acre phase, along with land parcels for sale. Located within the Banting industrial zone, the park has close connectivity to Port Klang, which will be further enhanced by linkage from the West Coast Expressway.

According to Teh, operators will benefit from the two high-voltage Tenaga Nasional Bhd (KL:TENAGA) transmission lines flanking IOI Industrial Park at Banting, providing connectivity to manufacturing and industrial players such as data centres that require high power loads.

At the time of writing, IOI Properties shares were up four sen or 2.1% at RM1.93, giving the group a market capitalisation of RM10.63 billion.

Looking to buy a home? Sign up for EdgeProp START and get exclusive rewards and vouchers for ANY home purchase in Malaysia (primary or subsale)!