Sime Darby Property gets commitment for balance 30% of RM1b industrial development fund

KUALA LUMPUR (April 19): Sime Darby Property Bhd, Malaysia’s biggest developer in terms of landbank, has secured commitment for the remaining 30% of its industrial development fund to close at RM1 billion.

The commitment signals “confidence and support from investors in our infrastructure initiatives aimed at enhancing connectivity and livability within our developments,” the company said in its annual report released on Friday. The investors were not identified.

The fund, set up as a 51:49 joint venture with Australia’s Logos Property Group, will complete Metrohub 1 and 2 at the E-Metro Logistics Park, the company said. The fund also managed to secure J&T Distribution Solutions Sdn Bhd as the first pre-committed tenant, it noted.

“Our ability to deliver on these initial projects will provide a strong foundation for expanding our fund management business in the future,” Sime Darby Property added.

The fund, part of the so-called SHIFT25 strategy unveiled in 2021, aims to generate recurring income streams such as fund management and development services fees. SHIFT25 targets to broaden its income base to a 70:30 split between property development and recurring income streams.

The company’s investment and asset management division currently manages 32 assets comprising retail, office and industrial properties located within the Klang Valley and the UK, where Sime Darby Property was part of a consortium of Malaysian corporations that redeveloped the Battersea Power Station.

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