KUALA LUMPUR: Sime Darby Property Bhd’s unit Sime Darby Property (Capital Holdings) Pte Ltd has entered into a shareholders’ agreement with LOGOS SE Asia Pte Ltd, a unit of LOGOS Property Group Ltd, over the setting up of industrial development funds.
In a filing with Bursa Malaysia, the group said the joint venture is to provide fund management and development services to industrial development funds established by the joint venture.
It said the first seed fund of the joint venture is intended to be structured as a Singapore limited partnership, which is targeting total capital commitments of equivalent to US$200mil or about RM850mil from accredited and institutional investors.
Sime Darby Property has allocated a 177-acre site within its prime Bandara Bukit Raja township in Klang for the purposes of the joint venture.
“The Fund’s primary focus is to develop and invest in build-to-suit to lease or sell assets, primarily for clients in the logistics sector,” it said.
On rationale, Sime Darby Property said the joint venture and its subsidiaries will enhance its existing investment and asset management business.
The division currently manages five million sq ft of total net lettable area in Malaysia, Singapore and the UK.
“This is part of Sime Darby Property’s ongoing efforts to diversify its business and broaden income streams beyond property development towards becoming a sustainable real estate development company by 2025,” said the group.
Sime Darby Property’s share of equity requirements of the JV Co Group, which are expected to be minimal at RM2mil, will be raised via internally generated funds.
Source: The Star
