ARA DAMANSARA: Sime Darby Property Bhd (SDP) and Mydin Mohamed Holdings Bhd (Mydin) marked a significant milestone with the official groundbreaking of a RM450mil fully automated distribution centre. Officiated by Menteri Besar Selangor Datuk Seri Amirudin Shari, the ceremony underscored the state’s recognition of the project as a critical strategic investment for national economic growth.
The facility, which spans an impressive 19.0 acres of prime freehold land and boasts a built-up area of 786,000 sq ft, is situated within the award-winning master-planned township, the City of Elmina. This high-value development reinforces the township's evolution into a key economic engine for Selangor, promising a vital addition to national supply chain security.
Crucially, the development signals a definitive shift towards Smart Logistics. It is being executed under Sime Darby Property’s signature Built-to-Suit to Lease (BTSL) model, where the Group custom-designs and constructs the facility to meet the exact, high-tech operational needs of Malaysia’s largest halal hypermarket and retail chain, securing a 15-year long-term lease in the process.
The centrepiece of the hub is an advanced Automated Storage and Retrieval System (ASRS), a technology leap designed to future-proof Mydin’s supply chain. This automation is projected to deliver significant efficiency gains, including a 240% increase in throughput capacity and a 36% increase in pallet storage. Furthermore, the move to automation will drive a reduction of over 50% in low labour requirements, consequently shifting the demand towards higher-skilled jobs in logistics technology and robotics.
SDP managing director and chief executive officer, Datuk Seri Azmir Merican, highlighted that the partnership reflects the increasing confidence placed in our industrial proposition – not just as a developer but as a long-term ecosystem builder. We are honoured to partner with Mydin to deliver a facility that represents the future of Malaysian commerce, where heritage meets high-tech.”
Mydin managing director Datuk Wira Ameer Ali Mydin said: “We view this strategic and timely investment in Sime Darby Property’s City of Elmina as a significant enabler, allowing Myin to upscale boldly and innovatively with cutting-edge technology. The expansion will also allow for more talent development and upskilling.”
He added: “As a result, we are elevating our role as a key player in Malaysia’s competitive retail and supply chain ecosystem while serving our customers more efficiently and more rapidly. Being a progressive leader is also essential for the country’s industrial goals and halal sector development.”
The selection of the City of Elmina is highly strategic. The location offers excellent accessibility to the entire Klang Valley logistics belt, thanks to seamless connectivity via five major highways. This unparalleled access ensures efficient movement of goods for national distribution while the township’s ESG-ready infrastructure and master-planned industrial clusters attract and support long-term operations for high-tech industries.
With construction anticipated to be completed in Q3 2027, the development is poised to generate significant positive spillover effects, solidifying the City of Elmina’s role as a key strategic hub for advanced industry and logistics in the region.
The groundbreaking ceremony was witnessed by SDP investment and asset management chief operating officer Aurelia Lee, township development chief operating officer Appollo Leong Yong Kuan and industrial logistics development head Azlan Azri Zainal Abidin as well as Mydin executive director Datuk Murad Ali Mydin.
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