MIEL signed a long-term agreement to sublease 7.32 acres of land and plan to construct a 100,000 sq ft warehouse, complete with all the facilities of a modern distribution centre.

Under the agreement, MIEL will sublease the land for 24 years, with an option to renew the agreement for another 30 years, PTP said in a statement.

This move into PTP’s Distripark is expected to involve an investment of RM20 million on MIEL’s part and marks its strategic move from developing industrial properties to the logistics business.

To strengthen its entry into the logistics arena, MIEL has also signed a memorandum of understanding with global logistics provider Mayne Nickless Logistics (MNL) of Australia.

MNL is incorporated in Malaysia under the name of On-Line Distribution Services Sdn. Bhd. It boasts a global network, servicing a large clientele of multinational companies especially in fast-moving consumer goods and firms involved in the healthcare business.

MNL and MIEL will jointly develop a regional distribution centre by capitalising on PTP’s Distripark free zone status.

MIEL, which has a 36-year record of developing industrial properties, is also evaluating potential sites under its landbank for possible conversion into logistics and distribution park.

“The strategic presence in PTP provides MIEL with an excellent new business opportunity particularly in logistics,” MIEL Chief Executive Azmi Thambi Chik said in the statement.