KUALA LUMPUR: The ISP Group of Companies (ISP) has acquired industrial assets valued at RM188.5 million, positioning itself to tap into the growing demand for sustainable logistics warehouses and manufacturing hubs in Malaysia.
The company acquired four industrial properties with a total gross floor area of around 850,000 square feet, financed through a combination of internal funds and borrowings.
Located in Johor and Selangor, the assets will be redeveloped into sustainability-focused logistics warehouses and manufacturing hubs to cater to the increasing demand in the country.
ISP, which is a property company that specialises in the logistics warehouses and manufacturing hub (LWMH) and purpose-built workers accommodations (PBWA) segments, anticipates starting to rent or lease these properties by the first quarter of 2025.
Eric Ng, the founder and group chief executive officer of ISP Holding Sdn Bhd, said, "We expect the demand to lease or rent prime logistic warehouses, especially those located in strategic and highly accessible areas in Malaysia, to remain robust due to the country's strong economic fundamentals and positive growth outlook of key industries."
These sectors include semiconductors, manufacturing, technology (data centres), and logistics.
Meanwhile, Ng also believes that the rental rates are projected to increase due to the shortage of Grade A warehouses and high construction costs, which present a significant barrier to entry."
ISP aims to focus on infrastructure and sustainability by ensuring reliable infrastructure, transport networks, and amenities in its LWMH assets.
Furthermore, Ng added that the company is working towards obtaining green certificates for all logistics warehouses and manufacturing hubs.
ISP's portfolio now includes 8 LWMH assets with a total gross floor area of 2.3 million square feet, with plans of further expansion, particularly in Johor and the Klang Valley, with continued investment in innovation and sustainability