Sime Darby Property launches RM1.25b fund for data centres, logistics developments

KUALA LUMPUR - Sime Darby Property Bhd (SDP) has launched a RM1.25 billion real estate development fund, the New Economy Venture (NEV), to invest in build-to-suit-to-lease data centres, as well as industrial and logistics development projects within SDP’s key townships in Malaysia.

Structured as a shariah-compliant closed-end fund, the NEV is a discretionary investment platform with a five-year fund life, SDP said in a statement with Bursa Malaysia today.

Backed by institutional investors, including the Employees Provident Fund (EPF), Lembaga Tabung Angkatan Tentera (LTAT) and Great Eastern Life Assurance (Malaysia) Bhd, SDP said the fund achieved 100 per cent capital commitment at its first close.

"SDP will act as the general partner and sponsor to the fund, and has committed RM500.1 million as a co-investor at the first close," it said.

Group managing director and chief executive officer Datuk Seri Azmir Merican said as the fund’s general partner and manager, the role will enable the company to diversify its recurring income streams through investment yield and fee-based income from the development of new economy assets.

That included data centres and warehouses, which are much in demand in the Malaysian real estate market, he said.

To date, the fund has secured two high-value seed assets strategically positioned within its flagship township, namely the Elmina Business Park and City of Elmina, SDP said.

"The seed assets represent about 85 per cent of the target fund size and are supported by long-term lease arrangements, providing the fund with income visibility and stability," it said.

It added that construction of both assets has commenced and is expected to be completed in the second half of 2027, reflecting the fund’s immediate deployment visibility. -BERNAMA