FM Global Logistics buys two more plots of land in Setia Alaman Industrial Park for RM37.7m

• The latest acquisition comes shortly after the international freight services provider's announcement in January that it was buying 5.68 acres of land in the same industrial park from Petaling Garden, also at RM153 per sq ft, for RM37.86 million.

KUALA LUMPUR (March 20): FM Global Logistics Holdings Bhd is buying two more plots of freehold land totalling 5.66 acres in the Setia Alaman Industrial Park, Klang, from property developer Petaling Garden Sdn Bhd for RM37.72 million, cash, or RM153 per sq ft.

The latest acquisition comes shortly after the international freight services provider's announcement in January that it was buying 5.68 acres of land in the same industrial park from Petaling Garden, also at RM153 per sq ft, for RM37.86 million. Petaling Garden is a wholly owned subsidiary of I&P Group Sdn Bhd, which is in turn wholly-owned by SP Setia Bhd.

Similar to the January deal, FM Global Logistics said in a bourse filing that the acquisitions are to facilitate the group’s future expansion of its Third-Party Logistics (3PL) warehousing and distribution services.

“The purchase consideration is reasonable and reflects the current price of similar lands near the properties,” it said.

FM Global Logistics said the properties are strategically located in an established industrial area with good infrastructure and connectivity such as the NKVE-Setia Alam Link, New Klang Valley Expressway (NKVE), New North Klang Straits Bypass (NNKSB) and Federal Highway for ease of logistics.

Given their location, the group said the acquisitions are expected to contribute positively to its growth when they are "developed into warehousing and distribution services in the future".

FM Global Logistics is currently operating about 1.36 million sq ft of warehousing space in multiple countries, including 285,000 sq ft in Singapore.

The group will add 200,000 sq ft to its warehousing capacity by June, when the construction of its new warehouse in Port Klang is completed.

Besides increasing its warehousing capacity once developed, the acquisitions are expected to significantly strengthen its 3PL capabilities in Malaysia.

Shares of FM Global Logistics closed one sen or 1.7% higher at 60 sen on Wednesday, giving the group a market capitalisation of RM335.07 million.

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