OCR Group Bhd has declared that it will be developing an integrated e-commerce logistics hub through a proposed joint venture (JV) with Magna Prima Berhad’s subsidiary, Magna Ecocity Sdn Bhd. The project has a planned gross development value of RM1.5 billion and built on a 20-acre site in Section 15 in Shah Alam, Selangor, that will be launched in stages starting next year.
The proposed JV will involve a profit-sharing scheme that will require OCR Avenue to pay RM160 million as minimum entitlement or 30% of the development profit, whichever is higher, to Magna Ecocity, upon fulfilment of certain conditions.
According to a statement from OCR, it is set to be the Group’s biggest venture into the CRE (commercial real estate) segment to date and will comprise a mixture of retail and commercial spaces, including multi-storey integrated e-commerce spaces specifically targeted for small and medium-sized enterprises (SMEs), as well as serviced apartments.
OCR’s managing director Billy Ong commented that the maiden integrated e-commerce development is a significant milestone for OCR, and positions us to benefit from the secular strong growth of the e-commerce industry and CRE segment in the market.
"The development is in line with our sector diversification strategy, which currently mainly features residential properties. With the target launch of our RM750 million affordable housing project in Shah Alam by the second half of 2022, the proposed integrated e-commerce spaces will further cement our foothold in the thriving city.”
The proposed JVA will involve a profit-sharing scheme that requires OCR Avenue to pay a total sum of RM160mil as minimum entitlement or 30% of the development profit (whichever is higher) to Magna Ecocity, upon fulfillment of certain conditions.