Singapore-based property developer Lum Chang Holdings Limited has through its joint venture firm in Malaysia, Lum Chang Tien Wah Property Sdn. Bhd. signed an agreement with Malaysia-based data center specialist, MyTelehaus Sdn. Bhd. to jointly develop and operate a data centre in Petaling Jaya, Selangor, the company announced in an exchange filing yesterday.
Under the JV agreement, both parties will collaborate to develop, construct, fit-out and operate a data center on land owned by Lum Chang Tien Wah Property Sdn. Bhd, a 50%-50% joint venture between Lum Chang’s subsidiary, Kemensah Holdings Pte. Ltd. and Tien Wah Properties Sdn. Bhd., the property investment arm of Tien Wah Press Holdings Berhad, a company listed in Bursa Malaysia.
Lum Chang Tien Wah Property will also construct the core and shell of the data center which will be sited on 1.61 acres of leasehold land in Section 13, Petaling Jaya, which is part of the 3.22 acres it owns. Upon completion, it will lease out the land together with the core and shell, to MyTelehaus for 30 years.
MyTelehaus will be responsible for the design, build, installation and fit-out, testing and commissioning of the mechanical and electrical portion of the data center as well as the management, operation, marketing and leasing to tenants. Income generated from the leasing will be distributed in proportion to the capital expended by each party.
“The collaboration with MyTelehaus is in line with our group’s growth strategy to further its strong development presence by collaborating with a strong and experienced partner in the fast-growing data centre business in Malaysia,” said Lum Chang.
Section 13 is an established township within Petaling Jaya district comprising industrial, commercial and residential developments where demand is high for cloud and artificial intelligence services.