KUALA LUMPUR (March 7): Global Vision Logistics (GVL) has announced the establishment of a maiden RM1.5 billion Asean green sustainable and responsible investment (SRI) sukuk programme, to fund the development of the Shah Alam International Logistics Hub (SAILH).

The sukuk programme was established under the shariah principle of murabahah (via a tawarruq arrangement), and based on the Securities Commission Malaysia’s SRI sukuk framework and the Asean capital markets forum’s Asean green bond standards.

The first tranche comprising RM620 million unrated Islamic Medium-Term Notes will be issued in the second quarter of the year.

UOB Malaysia is the principal adviser, lead arranger, and joint lead manager for the sukuk programme, while AmInvestment Bank is the joint lead manager.

In a statement, GVL’s chairman Oh Kim Sun said upon completion, SAILH will be one of the region's largest logistics and green-certified hubs, and will improve the competitiveness of Malaysia's logistics sector.

SAILH will be strategically located on 71 acres of Shah Alam prime industrial estate and connected to land, sea and air transportation networks. It will consist a four-storey warehouse complex that includes two driving ramps for light and heavy-duty vehicles to easily access each warehouse level, as well as other amenities including offices, conference facilities and workers’ residence.

Phase one of the development is expected to be completed by mid-2025 with a total net lettable area of 2.8 million square feet. The remaining phases will be completed by the end of 2028. The hub will also feature the latest in logistics technology and systems to manage the storage and the flow of freights and inventories to other distribution centres and retail network within the country and abroad.

The logistics hub is expected to attain the local GreenRE Silver Rating and attain global recognition from the Excellence in Design for Greater Efficiencies (EDGE) Advanced and EDGE Zero Carbon. The standards and certification processes are aligned with the United Nations Sustainable Development Goals and the World Green Building Council’s commitment to developing buildings that produce as much (or more) energy than they consume or aim to achieve a net zero future.

“To achieve the green certifications, SAILH incorporates sustainable features from the construction stage to the completion and operational stages. These include the use of low-carbon building materials during construction to the installation of solar panels, efficient water fittings and energy-efficient lightings, elevators and air-cooling systems,” Oh said.

UOB Malaysia chief executive officer Ng Wei Wei said the bank is pleased to be supporting the development of SAILH, which is aligned with its net zero commitments, while contributing to the country’s logistics industry growth.

“With intra Asean and China-Asean trade collectively valued at about US$1.3 trillion, the development of the logistics sector is critical to facilitate trade and ensure Malaysia’s competitiveness in the global supply chain,” Ng added.

It was reported in 2021 that GVL had partnered with Asia-Pacific logistics property specialist LOGOS SE Asia Pte Ltd to develop SAILH. Knight Frank Malaysia brokered the joint venture deal, which will be by way of a 60% share subscription by LOGOS into GVL which will undertake the development.

GVL operates one of the largest build and lease warehouse of its kind in Asia. GVL is a value-added partnership comprising partners with extensive knowledge in property development, logistics operations and market distribution. Collectively, the partners manage close to three million square feet of warehouses across Asean.

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