HTPADU (5028): HEITECH PADU BHD inks JV agreement to construct next-gen data centre in Shah Alam
KUALA LUMPUR (March 5): HeiTech Padu Bhd has entered into an unincorporated joint venture (JV) agreement with Regal Orion Sdn Bhd (RO) for the construction of a Tier IV data centre at an unused portion of land owned by the former in Shah Alam, Selangor.
RO, which is involved in engineering, construction and project management, specifically in the data centre development sector, previously bought over a data centre project at Techpark @ Enstek in Labu, Seremban, Negeri Sembilan.
The JV project entails the proposed construction, commissioning and testing of the Tier IV data centre, which comprises a five-storey building with racks to be tenanted upon completion by international or multinational tenants or occupiers.
HeiTech currently operates another data centre on the Shah Alam land, while a remaining 2.71 acres remain undeveloped. The JV project will be built on the undeveloped portion of the land.
Under the agreement, HeiTech will grant RO the right to develop the land, in exchange for a 20% cut of the profit after tax of the project, for any income-generating activity.
“The JV agreement is in line with HeiTech’s overall corporate strategy to gain new business from both existing and new markets. The group is confident that it will continue to be relevant and remain as one the nation’s major player for IT services,” said HeiTech in its filing with the bourse.
The group expects the project to contribute positively to its future revenue.
HeiTech rose two sen or 1.3% to close at RM1.55 today, giving it a market capitalisation of RM156.9 million.
http://www.theedgemarkets.com/article/heitech-padu-inks-jv-agreement-construct-nextgen-data-centre-shah-alam
