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- The JV company, Lum Chang Tien Wah Property Sdn Bhd (LCTWP), has signed an agreement with MyTelehaus Sdn Bhd to develop, own, lease and operate a data centre.
KUALA LUMPUR (Jan 7): Tien Wah Press Holdings Bhd (KL:TIENWAH) said on Wednesday (Jan 7) that its joint venture with Singapore-listed Lum Chang Holdings Ltd is entering the data centre business to tap into growing demand for such infrastructure.
The JV company, Lum Chang Tien Wah Property Sdn Bhd (LCTWP), has signed an agreement with MyTelehaus Sdn Bhd to develop, own, lease and operate a data centre on 1.61 acres of the 3.22 acres of land owned by LCTWP in Section 13, Petaling Jaya, Selangor, Lum Chang said in a filing with the Singapore stock exchange.
Under the agreement, LCTWP will provide the development land and fund and construct the core and shell of the building. MyTelehaus will, at its own cost, obtain all regulatory approvals, design, fit out, commission, operate, market and lease the data centre.
LCTWP will then lease the land and completed core and shell to MyTelehaus for 30 years under a formal lease agreement.
Revenue generated from leasing and operating the data centre will be shared based on each party’s capital expenditure for each phase, with LCTWP’s share expected to range from 50% at initial operating capacity to 20% upon full phased expansion.
If MyTelehaus cannot continue in the venture, LCTWP may pursue other development or partnership options, subject to market conditions and approvals.
Tien Wah said the development aligns with LCTWP’s long-term strategy of optimising the value of its land assets, supported by growing demand for data centre infrastructure, suitable zoning, power availability and the strategic location of the site.
The venture also allows LCTWP to collaborate with MyTelehaus, an established partner in Malaysia’s fast-growing data centre sector, while retaining ownership of the land and the building.
“By leveraging MyTelehaus’s technical expertise, operational capabilities and industry networks, the collaboration is expected to create potential synergies and long-term benefits for LCTWP and, indirectly, the group,” Tien Wah said.
The venture will be funded through LCTWP’s internal funds, bank borrowings and possibly shareholder loans, with Tien Wah expected to contribute about RM15.3 million of LCTWP’s total capital commitment of RM115 million.
The board said the venture is not expected to have any material impact on TWPH’s earnings per share, net assets per share, gearing, share capital or substantial shareholders’ holdings for the financial year ending Dec 31, 2025.
Barring unforeseen circumstances, the project is anticipated to contribute positively to the group’s earnings in future financial periods.
Shares in Tien Wah ended unchanged at 77.5 sen on Wednesday, valuing it at RM112.2 million.
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