KUALA LUMPUR: IJM Corp Bhd's acquisition of a 25 per cent share in Global Vision Logistics (GVL) will increase its expertise in industrial buildings and give it a new source of recurring revenue.
The RM89 million deal, according to RHB Research, equates to RM110 per square foot (psf) for IJM Corp.
"Our observations on online listings reveal that asking prices for industrial land near the logistics hub range between RM105 psf and RM140 psf.
"Independent valuer Knight Frank Malaysia has valued the whole 71-acre land at RM495 million, or RM154 psf. Taking these points into consideration, we view IJM's deal as reasonably priced."
IJM Corp will be acquiring GVL, the developer of the Shah Alam International Logistics Hub (SAILH), from Swift Haulage Bhd and Hartamas Mentari Sdn Bhd.
The logistics hub is located on a 28.73-hectare site in Section 16, Shah Alam, which will be developed in two phases.
IJM Corp is the contractor for SAILH Phase 1A under a contract worth RM654 million awarded in June 2023.
Phase 1 of SAILH is expected to be completed by mid-2025 with a total net lettable area of 2.8m sq ft while the remaining phases will be completed by the end of 2028, bringing the net lettable area to 6m sq ft.
"IJM Corp's stake in GVL may enable it to secure work for the upcoming phase of SAILH," it said.
Assuming a 100 per cent utilisation of the first phase of GVL with a rental rate of RM2 psf, RHB Research forecasts an annual revenue of RM67 million and a net profit of RM6.7 million for IJM Corp.
