PETALING JAYA: Sime Darby Property Bhd
’s (SimeProp) proposed Bukit Kerayong industrial development in Kapar, Selangor, is expected to strengthen its long-term growth trajectory, with analysts viewing the project as a strategic expansion of its industrial property portfolio.
While detailed financial guidance has yet to be disclosed, they believe the project reinforces the group’s industrial growth strategy and enhances its long-term development pipeline.
According to TA Research, the project marks an important milestone as it shifts from the planning stage towards implementation, extending the group’s industrial development pipeline beyond its established business parks.
“We view the announcement positively as it moves Bukit Kerayong from planning into implementation, extending SimeProp’s industrial development pipeline beyond Bandar Bukit Raja and Elmina Business Park,” the research house said.
It noted that the site sits within the Klang-Kuala Selangor industrial corridor, offering direct access to Port Klang via the West Coast Expressway, while the upcoming East Coast Rail Link is expected to further enhance cargo connectivity.
The development is planned as a next-generation heavy industrial park catering to logistics, manufacturing and renewable energy-related industries.
TA Research also considers the acquisition price of RM798.3mil, or about RM18 per sq ft, to be reasonable given improving infrastructure and stronger industrial demand in the corridor.
For context, SimeProp recently announced that it and its sister company, SD Guthrie Bhd, are proceeding with their joint venture to develop a mega industrial and logistics corridor in Kuala Selangor through the injection of 1,021.93 acres of land in Bukit Kerayong.
Although SimeProp has yet to disclose the project’s gross development value (GDV), TA Research estimates that Bukit Kerayong could generate between RM4bil and RM5bil based on comparable industrial developments, potentially lifting SimeProp’s remaining development GDV by about 4% to 5% to around RM110bil.
However, it left its financial year 2026 to 2028 earnings forecasts unchanged pending greater clarity on the project’s masterplan, development phasing and launch schedule.
TA Research maintained its “buy” recommendation on SimeProp, with an unchanged target price of RM2.10, citing the company’s sizeable industrial landbank, diversified township pipeline and expanding recurring income base.
Hong Leong Investment Bank Research shared a similarly constructive view, saying the joint venture combines SD Guthrie Bhd’s strategic landbank with SimeProp’s industrial development expertise to unlock a new industrial growth corridor.
