Skrine represented Kwasa Logistics Sdn Bhd (“Kwasa”) and Goodman SEA Investments No. 1 Limited (“Goodman”) in the sale of their entire interest in an investment holding company, VM Andaman Sdn Bhd (“VM”), to Tiong Nam Logistics Holdings Berhad (“Tiong Nam”) for a total cash consideration of RM 30,000,000. The consideration is subject to adjustments in the Net Assets of VM based on a Final Completion Statement.
 
Kwasa is a wholly owned subsidiary of the Employees Provident Fund Board. Goodman is wholly owned by Goodman SEA Holdings Limited, which in turn is wholly-owned by Goodman Logistics (HK) Limited, a stapled entity of “Goodman Group” listed on the Australian Securities Exchange.
 
The acquisition by Tiong Nam entails the purchase of VM and its interest in a sub-lease of land located at Pelabuhan Tanjung Pelepas, Johor, measuring approximately 287,496 sq. ft. with a 158,013 sq. ft. capacity warehouse constructed thereon. According to the announcement released by Tiong Nam to Bursa Malaysia, the acquisition will enhance its logistics and warehousing services business to meet increasing demand by expanding its total warehousing capacity from 6,032,910 sq. ft. as at 31 March 2021 to 6,190,923 sq. ft.
 
The Skrine deal team was led by Banking and Real Estate Partner, Lee Ai Hsian, who was supported by Associate, Tai Kean Lynn.
 
Media coverage of the transaction can be accessed at:
 
https://www.theedgemarkets.com/article/tiong-nam-acquires-johor-warehouse-rm30-mil
 
https://www.thestar.com.my/business/business-news/2021/06/10/tiong-nam-logistics-buys-warehouse-for-rm30mil
 
https://www.nst.com.my/business/2021/06/697381/tiong-nam-buys-warehouse-johor-rm30mil