JAG Buys RM36.89m Freehold Industrial Land in Shah Alam's HICOM Estate from Kobe Steel: What It Means for Land Buyers
JAG Bhd is buying 15,016 sq m of freehold land in the HICOM Industrial Estate, Shah Alam, from Kobe Steel for RM36.89 million to recycle data centre gear, solar panels and EV batteries.
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Key Takeaways
- JAG Bhd, through its wholly owned unit JAG Renewable Energy Sdn Bhd, is buying a freehold industrial plot of 15,016 sq m in the HICOM Industrial Estate, Shah Alam, from Japan's Kobe Steel Ltd for RM36.89 million cash, The Edge Malaysia reported on 14 October 2026.
- The land will host new lines to treat, dismantle, segregate, recycle and recover materials from end of life equipment, with data centre equipment, solar panels and EV batteries named as target waste streams.
- By our calculation, the price works out to about RM228 per sq ft of land (15,016 sq m is about 161,630 sq ft, or roughly 3.7 acres).
- JPPH registered data for Shah Alam shows a median of RM210 psf of land for industrial land deals over the past 24 months, so this deal sits a little above the typical level.
- The deal is a reminder that large freehold plots in established Shah Alam estates are scarce, and that new industries such as recycling for data centres and solar are now competing for them.
What happened
On 14 October 2026, JAG Bhd told Bursa Malaysia that it would acquire a piece of freehold industrial land in Shah Alam, Selangor, from Kobe Steel Ltd of Japan for RM36.89 million. The Star put the plot at 15,016 sq m, and The Edge placed it in the HICOM Industrial Estate.
According to the filing, the purchase is part of the group's strategy to expand its total waste management division and to build processing capacity for "emerging industrial waste streams". Beyond adding processing and storage space, the land is meant for new processing lines and supporting facilities for the treatment, dismantling, segregation, recycling and recovery of materials from end of life equipment. JAG said it wants to serve the waste management and resource recovery needs of data centres, the solar energy industry and the EV industry, and has picked end of life data centre equipment, solar photovoltaic panels and EV batteries as its target waste streams.
Other details from The Edge:
| Item | Detail |
|---|---|
| Buyer | JAG Renewable Energy Sdn Bhd, wholly owned by JAG Bhd |
| Seller | Kobe Steel Ltd, Japan |
| Location | HICOM Industrial Estate, Shah Alam |
| Tenure | Freehold |
| Land area | 15,016 sq m |
| Price | RM36.89 million, cash |
| Funding | Internal funds and bank borrowings |
| Shareholder approval | Not required |
| Expected completion | By 16 January 2027 |
As at end June 2026, JAG had cash and bank balances of RM10.56 million against borrowings of RM65.14 million, so the purchase will lean on bank financing.
Reading the price
Converting the land area, 15,016 sq m is about 161,630 sq ft, which puts the deal at about RM228 per sq ft of land. That is our own arithmetic from the reported figures, not a number in the filing.
For context, JPPH registered transactions for Shah Alam recorded 6 industrial land deals in the 24 months to August 2026, with a median price of RM20.77 million, a typical range of RM19.94 million to RM36.1 million and a median of RM210 psf of land. Detached factories in the same data changed hands at a median RM335 psf of land. The JAG price is near the top of the land price range in total value, and a little above the median per sq ft. The filing does not say whether the plot carries any buildings, which would also affect the price. You can follow the registered numbers on our Shah Alam transaction prices and rents page.
Why it matters to factory owners, tenants and buyers
Big freehold plots in mature estates are rare
The HICOM Industrial Estate, which spans Section 26 and 27 of Shah Alam, is a mature and largely built up estate. In estates like this, large plots seldom come to market, and when they do it is usually because an existing owner decides to sell, as Kobe Steel has here. Buyers who need a big site in central Selangor often have to wait for exactly this kind of release. Our HICOM Industrial Estate guide lists what is available in the estate today.
New industries are joining the queue
The data centre build out has been visible in Selangor for two years. This deal shows the next layer: companies that handle what data centres, solar farms and EVs leave behind. Recycling and recovery plants need space for storage, sorting lines, heavy vehicles and, often, environmental approvals. They tend to prefer established industrial zoning where such uses are accepted, which puts them in competition with conventional manufacturers for the same sites.
Approvals matter as much as price
A plant that treats or recovers material from waste usually needs Department of Environment (DOE) approvals in addition to local council and fire safety clearances. For a buyer, the key questions before signing are whether the land's category and zoning allow the intended use, and how long the approvals will take. FactoryHub reported last week how planning permission delays led Pantech to sell a Kapar plot, a reminder that timelines can change the economics of a land purchase.
Practical next steps
- Owners of large Shah Alam plots: buyers now include recycling and data centre supply chain operators, not only manufacturers. Know your land's zoning, express conditions and power supply before you list it.
- Buyers: compare against registered JPPH prices per sq ft of land, not asking prices, and get a land search and zoning check done early.
- Tenants in HICOM and nearby sections: consolidation of large sites can reduce the stock of big detached factories for rent. If your lease ends within 12 months, start looking early.
- Recycling or waste operators: confirm DOE requirements and the land's express conditions before you pay a deposit.
- Anyone comparing areas: see our industrial land for sale in Shah Alam listings to judge what else is on offer.
Frequently Asked Questions
What land is JAG buying from Kobe Steel?
JAG Bhd, through JAG Renewable Energy Sdn Bhd, is buying a freehold industrial plot of 15,016 sq m in the HICOM Industrial Estate, Shah Alam, from Kobe Steel Ltd for RM36.89 million. The deal is expected to be completed by 16 January 2027 and does not need shareholder approval.
How much per sq ft did JAG pay for the Shah Alam land?
Based on the reported 15,016 sq m, which is about 161,630 sq ft, the price works out to roughly RM228 per sq ft of land. JPPH registered industrial land deals in Shah Alam had a median of RM210 psf of land over the past 24 months.
What will the Shah Alam land be used for?
JAG plans processing lines and facilities for treating, dismantling, segregating, recycling and recovering materials from end of life equipment. It has named data centre equipment, solar photovoltaic panels and EV batteries as its target waste streams.
Is industrial land in Shah Alam still available for sale?
Yes, but large freehold plots in mature estates such as HICOM are scarce and usually appear when an existing owner sells. JPPH registered data recorded 6 industrial land deals in Shah Alam in the 24 months to August 2026, which shows how thin this market is.
FactoryHub is dedicated to helping every client find the right factory or warehouse. For factories, warehouses or industrial land in Shah Alam, Klang and Port Klang, contact Peter Tan (REN 12771) at 016-666 6872 or Jason Low (PEA 1478) at 012-288 1834.
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