Berjaya Property Bhd (BProperty) has taken a significant step towards diversifying its business portfolio by investing in the logistics and infrastructure sector. The company has proposed to acquire a 29% stake in Manjaran Sdn Bhd for RM58 million, providing exposure to the large-scale Perlis Maritime Corridor (PMC) development.
Under the proposed arrangement, BProperty will subscribe for 2.32 million new ordinary shares in Manjaran. Most of the purchase consideration will be settled through the issuance of 206.79 million new BProperty shares valued at RM0.28 each, while the remaining RM100,000 will be paid in cash. Upon completion, Manjaran will become a substantial shareholder in BProperty with a 4.06% stake.
Understanding the Value of the Investment
The transaction values Manjaran at approximately RM312.5 million. Based on management projections, Phase 1 of the Perlis Inland Port (PIP) is expected to generate an average annual profit after tax of RM16 million over a 20-year period beginning from the financial year ending Sept 30, 2027. This translates to an implied price-to-earnings ratio of around 19.53 times, which is considered comparable to valuations of established Malaysian port operators.
The Perlis Maritime Corridor Development
The PMC is an integrated logistics and infrastructure initiative designed to strengthen northern Malaysia’s position in regional trade and transportation. The project consists of three major components:
Perlis Inland Port (PIP)
Located on a 500-acre site in Chuping Valley near the Malaysia-Thailand border, the inland port serves as a key cargo consolidation and distribution hub. Operations began in December 2025 with an annual handling capacity of 600,000 TEUs, significantly higher than the previous Padang Besar Container Terminal’s capacity of 150,000 TEUs.
Perlis Sanglang Port (PSP)
The proposed deep-water port will act as the maritime gateway for the PMC. Its strategic location behind Langkawi Island provides natural protection from rough sea conditions, allowing year-round operations while reducing dredging and maintenance requirements.
Perlis Power Hub (PPH)
The energy component of the corridor aims to support industrial growth in Northern Malaysia and Southern Thailand. Plans include a combined-cycle gas turbine power plant with a generation capacity of up to 5,000MW.
The PMC is being developed through Mutiara Perlis Sdn Bhd, a joint venture owned by Mutiara Infra Sdn Bhd (80%) and the Perlis state government’s investment arm, Menteri Besar Incorporation (20%).
Strategic Benefits for Berjaya Property
Traditionally known for property development, BProperty views this investment as an opportunity to participate in sectors with long-term growth potential, namely logistics, port operations and energy infrastructure. The company also benefits from preserving cash resources, as most of the investment consideration is being settled through newly issued shares rather than cash.
Management believes the PMC could contribute positively to future earnings once the development reaches full operational capacity, while positioning the group to benefit from increasing demand for transportation, storage and cross-border trade activities.
Risks and Considerations
Despite the attractive growth prospects, several risks remain. Completion of the transaction depends on regulatory approvals and the fulfilment of conditions outlined in the subscription agreement. The success of the PMC will also depend on factors such as trade volumes, economic growth, government policies, construction costs, interest rates and inflation.
In addition, the issuance of new shares will dilute BProperty’s earnings per share, although the company expects the long-term benefits of the investment to outweigh the short-term impact.
What I Learned
This article demonstrates how property developers can pursue growth by investing in complementary industries such as logistics, transportation and infrastructure. Berjaya Property’s investment in Manjaran highlights the increasing importance of integrated logistics corridors in supporting regional trade and economic development.
I also learned that modern infrastructure projects are often built around interconnected components, such as ports, inland logistics hubs and energy facilities, creating a broader ecosystem that can generate multiple revenue streams. The Perlis Maritime Corridor reflects Malaysia’s efforts to strengthen its strategic position as a logistics gateway between Southeast Asia and neighbouring markets, while offering long-term investment opportunities for participating companies.
Yao Mu Realty, based in Kuala Lumpur, Malaysia, specializes in industrial real estate for factories and land, delivering professional and efficient solutions.
Posted by Yao Mu Realty Sdn Bhd on 30 Jun 26
Malaysia