Transaction News: AME Elite Consortium enters into joint venture with Kuala Lumpur Kepong to develop new industrial park

On 30 October 2024, AME Industrial Park Sdn Bhd (“AMEIP”), a wholly owned subsidiary of AME Elite Consortium Bhd (“AME”), and KLK Land Sdn Bhd (“KLKL”), a wholly owned subsidiary of Kuala Lumpur Kepong Bhd (“KLK”), announced their joint venture to develop a new industrial park in Ijok, Selangor.
 
The collaboration marks KLK’s inaugural venture into industrial property development and represents an expansion for AME outside of Johor and Penang, where it is a major industrial property developer.
 
The joint venture company, Oasis Innovation Sdn Bhd (“Oasis”) is 60% owned by AMEIP and 40% by KLKL. Subject to, inter alia, AME’s shareholders’ approval and planning permission from Majlis Perbandaran Kuala Selangor, Oasis will acquire parts of two parcels of freehold land from KLK in Mukim Ijok, Daerah Kuala Selangor with a nett development area of approximately 151.2 acres (“Land”) for a cash consideration of RM230.54 million.
 
The Land will be developed into a comprehensive range of industrial facilities that cater to diverse business needs, with the potential for workers accommodation and commercial components to create a self-sustaining industrial ecosystem.
 
Oasis will also exclusively engage and appoint AME Development Sdn Bhd, a wholly-owned subsidiary of AME as a project manager to provide services for the development of the Land.
 
Skrine acted as legal counsel to AME in the transaction. The lawyers involved are Partners Sheba Gumis, Sharifah Shafika and  Jesy Ooi, Senior Associates Engy Tan and Joey Tiw and Associate, Faith Chan.
 
Media coverage of the transaction can be accessed at:
 
https://theedgemalaysia.com/node/732295
 
https://www.thestar.com.my/business/business-news/2024/10/30/ame-elite-and-klk-form-jv-to-develop-industrial-park-in-selangor
 
https://www.businesstoday.com.my/2024/10/31/ame-klk-to-jointly-acquire-ijok-land-for-rm230-million-and-turn-into-industrial-park/
 
https://themalaysianreserve.com/2024/10/30/ame-elite-klk-to-develop-ijok-industrial-park-involving-rm231m-land-sale/#google_vignette
 

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.