PETALING JAYA: Sime Darby Property Bhd
(SimeProp) is negotiating with plantation giant SD Guthrie Bhd on possible joint developments or land sales in northern or southern Peninsular Malaysia, according to RHB Research.
SimeProp and SD Guthrie have several mutual shareholders. For example, Permodalan Nasional Bhd and the Employees Provident Fund together hold more than half of the shareholding.
“Looking beyond the local market, the management is also seeking growth opportunities in overseas markets, and the team is currently studying development potential in Vietnam,” the research house said.
They formed part of SimeProp’s efforts to explore new areas outside the Klang Valley for its property development segment.
This year, the group planned to launch RM4.7bil worth of new projects, including its maiden venture into Melbourne. Aurum, located near Queen Victoria market.
“We believe this project will be well-received, given the location as it should capture demand from students studying in RMIT and Melbourne University.
“Other launches include new residential and industrial phases in existing townships (56% of total launch gross development value), as well as high-rise integrated developments that make up the remaining 26% of total gross development value related to launches,” RHB Research added.
On investment and asset management, it expected “more aggressive” expansion as SimeProp is building new warehouses to grow its industrial portfolio.
Both Metrohubs phases one and two at Bandar Bukit Raja, Klang are already 100% occupied, while Metrohub four is under construction and scheduled to be completed in the third quarter of 2026 (3Q26).
“We understand that the pipeline interest has reached about two million sq ft, so leasing opportunities are promising.
“Meanwhile, the construction contract for Metrohub three has just been awarded. This property will feature more advanced storage facilities,” said RHB Research.
SimeProp had entered into an agreement with Mydin for a built-to-suit-to-lease automated distribution centre at Elmina, Shah Alam, with a built-up area of 786,00 sq ft worth RM450mil. The facility will be completed in 3Q27.
“With a lease tenure of 15 years, management indicates that the yield is comparable to the market yield for industrial properties.”
RHB Research remained upbeat on SimeProp’s growth prospects in the financial years of 2026-2027.
