KJTS teams up with Stonepeak to invest in Malaysia's district cooling projects
- KJTS Group Berhad and Stonepeak have formed a joint venture to invest in district cooling facilities in Malaysia.
- The joint venture is capitalized at MYR 1.5 billion, targeting a sizable market in energy-efficient solutions.
- The partnership aims to address rising energy demands and contribute to Malaysia's energy transition goals.
On March 14, 2025, in Kuala Lumpur and New York, KJTS Group Berhad, which specializes in energy-efficient cooling solutions in Malaysia, officially announced the formation of a joint venture with Stonepeak, an alternative investment firm based in New York. This collaboration aims to develop and invest in district cooling facilities across Malaysia. The venture plans to initially focus on establishing a diversified portfolio of district cooling and electricity distribution assets, responding to the growing energy demands in the region. The joint venture is set to be capitalized at MYR 1.5 billion, roughly equivalent to USD 340 million, funded through a combination of equity commitments from both companies and debt financing. This financial backing will position the joint venture to target an addressable market exceeding MYR 2 billion, or about USD 450 million, in project opportunities yearly, indicating significant growth potential in the district cooling sector. During the announcement, Azura Binti Azman, the Independent Non-Executive Chairman at KJTS, expressed enthusiasm about partnering with Stonepeak. She highlighted that Stonepeak is an ideal collaborator due to its important capital resources, industry connections, and operational expertise. This collaboration aims to deliver dependable, long-term energy solutions for customers, emphasizing the necessity of district cooling systems in Malaysia's ongoing energy transition. Moreover, Hajir Naghdy, Senior Managing Director at Stonepeak, stated that district cooling is essential for addressing the rising energy demands in Malaysia and Southeast Asia, noting its inclusion in national climate action initiatives. By leveraging the expertise of KJTS, they aim to effectively tackle the critical infrastructure needs posed by energy transition goals in the region. The joint venture is expected to close in the first quarter of 2025, bolstered by substantial legal support from Skrine for KJTS, and Linklaters LLP and Rahmat Lim & Partners for Stonepeak.