23 MARKET REPORT SUMMARY BUSINESS OVERVIEW 5. INDUSTRIAL Johor was in fifth position with total approved investments as of 3Q2023 worth RM20.0 billion. The manufacturing sector contributed significantly with about 35.0% (RM7.0billion). Transaction volume and value recorded a substantial y-o-y surge of 55% and 25%, respectively. 875 units changed hands in the first nine months of 2023 worth RM2.98billion, compared to 566 units transacted worth RM2.39 billion in the corresponding period in 2022. Some noteworthy industrial transactions were observed: • September 2023: Eco World Development Group Bhd acquired 403.78-acre freehold land in Mukim of Senai for RM211.06 million from IOI Prima Property Sdn Bhd • November 2023: STT GDC Malaysia 2 Sdn Bhd acquired seven (7) parcels of adjoining freehold/leasehold land totalling 22.39 acres in Nusa Cemerlang Industrial Park for RM117.02 million from Crescendo Corporation Berhad • November 2023: Microsoft Payments (M) Sdn Bhd acquired three (3) parcels of freehold land totalling 60.38 acres in Mukim of Pulai for RM315.17 million from Crescendo Corp Bhd • November 2023: Paragon Globe Bhd proposed to acquire eight (8) parcels of freehold land totalling 115.91-acre for RM146.1 million from UEM Sunrise Renowned developers are active in Iskandar Malaysia’s (IM) industrial developments. Some examples are land acquisitions by Eco World in Senai for a proposed Eco Business Park VI worth RM1.58 billion, and by Paragon Globe in Gerbang Nusajaya for a proposed industrial development worth RM0.96 billion. Besides that, Sunway Group is in a partnership with Equalbase to develop a 136-acre industrial logistic development in Sunway City Iskandar Puteri's Free Commercial Zone. At the same time, SP Setia is converting 308 acres of agricultural land into industrial land in the Gelang Patah locality. Underpinned by Singapore’s constrained data centre capacity, data centre investors and operators are eyeing to set up their facilities in Iskandar Malaysia (IM), leveraging on the availability of land and power supply at lower costs, proximity to Singapore as well as supportive local authorities. In line with this, Jland Group (JLG) announced their expansion plan in May, introducing a 640acre data centre park named Sedenak Tech Park 2 (STeP 2), which is set to be operational in September 2024. Data centre developments in IM are mainly focused in Sedenak Tech Park, Nusajaya Tech Park and YTL Green Data Centre Park. Hotspots near connectivity nodes including Pasir Gudang, Kulai, Senai, and Port of Tanjung Pelepas (PTP) continue to see demand from industrial players. The state government is also refining the ‘Fast Lane’ standard operating procedure (SOP) after its first implementation by the Kulai Municipal Council. Priority is given to the Johor Bahru City Council (MBJB), Iskandar Puteri City Council (MBIP) and Pasir Gudang City Council (MBPG). The realisation of the Johor Fast Lane across the state will create a more business and investor-friendly environment to draw more investors. Company Facility Name Power (MW) Expected Completion Location Airtrunk JHB1 150+ Phase 1: 2024 JB Shanghai DC - Science Co Ltd - MN Holdings Bhd N/A 120 Phase 1: 2024 STeP Princeton Digital Group JH1 150 Phase 1: 2024 STep YTL Power International I Bhd & Nvidia Corp N/A N/A Phase 1: 2024 YTL Green Data Centre Park (Extracted from CBRE/WTW Market Outlook Report 2024) Abbreviation: MW-megawatt, JB-Johor Bahru, STeP-Sedenak Tech Park Source: CBRE I WTW Research
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