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Sime Darby Property Launches RM1.25 Billion Fund for Data Center Development
🇲🇾 Malaysia /Economy & Trade

Sime Darby Property Launches RM1.25 Billion Fund for Data Center Development

From Utusan Malaysia · () Malay

Translated from Malay, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Sime Darby Property has launched its second property development fund, New Economy Venture (NEV), valued at up to RM1.25 billion over five years.
  • The Shariah-compliant fund will focus on new economy assets like data centers and logistics warehouses, which are in high demand.
  • Key institutional investors, including KWSP, LTAT, and Great Eastern Life, are supporting the fund, which has already secured two initial assets.

Sime Darby Property Berhad has launched its second property development fund, New Economy Venture (NEV), a Shariah-compliant investment platform with a target value of up to RM1.25 billion over a five-year period. This initiative marks a significant step in the group's transformation strategy, aiming to diversify income streams through recurring investment returns and fee-based income from new economy assets.

As an equity partner and fund manager, Sime Darby Property is poised to diversify its recurring income sources through investment returns and fee-based income from the development of new economy assets.

— Datuk Seri Azmir Merican, Group Managing Director and Chief Executive Officer of Sime Darby PropertyHe explains the strategic importance of the NEV fund for diversifying the company's revenue.

The fund's primary focus will be on high-demand sectors such as data centers and logistics warehouses within Malaysia's property market. Sime Darby Property will act as the equity partner and fund manager, leveraging its extensive land bank, master development capabilities, and established industrial ecosystem to meet the growing demand for these modern assets.

The successful launch saw NEV achieve 100% capital commitment at its first close, a milestone that builds on the performance of the group's inaugural fund, the Industrial Development Fund (IDF), launched in 2022. This achievement underscores the group's strength in its Investment and Asset Management segment.

NEV was established to invest in the development of build-to-suit-to-lease data centre and industrial and logistics development projects within Sime Darby Property’s key townships in Malaysia.

— Datuk Seri Azmir Merican, Group Managing Director and Chief Executive Officer of Sime Darby PropertyHe details the specific types of projects the fund will target.

NEV is backed by prominent institutional investors, including the Employees Provident Fund of Malaysia (KWSP), the Armed Forces Fund Board (LTAT), and Great Eastern Life Assurance (Malaysia) Berhad. Sime Darby Property itself has committed RM500.1 million as part of its co-investment strategy. The fund has already acquired two strategically located, high-value initial assets in Elmina Business Park and the City of Elmina, representing approximately 85% of the fund's target size and secured by long-term lease agreements.

The achievement continues the track record built through its maiden fund, Industrial Development Fund (IDF), which was launched in 2022.

— Datuk Seri Azmir Merican, Group Managing Director and Chief Executive Officer of Sime Darby PropertyHe highlights the success of the company's previous fund, demonstrating a pattern of achievement in asset management.
DistantNews Editorial

Originally published by Utusan Malaysia in Malay. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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