Mitsui, M'bishi to build logistics facilities for lease in Malaysia
BANDAR BUKIT RAJA, Malaysia, NNA - Mitsui & Co. and Mitsubishi Estate Co. has begun construction of two logistics facilities for lease in Bandar Bukit Raja, west of Kuala Lumpur.
The construction of the facilities, launched with a groundbreaking ceremony Wednesday, is part of a project of developing a complex of distribution facilities and manufacturing plants to meet growing and diversifying local demand, according to the Tokyo-based companies.
Under the project, a 160,000-square-meter site will be divided into a total of 10 tracts that can be used depending on the customers' needs. The minimum contract term is 10 years.
The Japanese firms joined local developer Sime Darby Property Berhad in establishing a joint venture to lead the 13 billion yen ($120 million) project.
The site can be used by up to 10 companies but the developer envisions leasing them to six to seven firms because some may need two zones, Daiji Kojima, managing director of Mitsui & Co. (Malaysia) Sdn. Bhd., told NNA on Wednesday.
The two clients that have already signed up are Malaysian major consumer electronics retail chain Senheng Electric (KL) Sdn. Bhd. and Leschaco (Malaysia) Sdn. Bhd., a German logistics firm's local subsidiary.
“We expect an expansion of demand for fast-moving consumer goods and e-commerce (in Malaysia),” said Eiichi Tanabe, CEO of MBK Real Estate Asia Pte. Ltd., Mitsui's Singapore-based wholly owned developer.
Mitsui and Mitsubishi Estate have operated similar logistics enterprises in China and the United States. (NNA/Kyodo)