Sime Darby Property eyes REIT by 2028, 1,022-acre BBR North

Sime Darby Property Bhd is exploring a real estate investment trust (REIT) listing by 2028, built on industrial, warehouse and data centre assets, according to Maybank Investment Bank. The bank wrote this in a note after a briefing with the developer. Its other growth plan is to move into heavy industrial parks, led by the 1,021.93-acre BBR North industrial and logistics hub in Mukim Jeram, Kuala Selangor, which it plans to launch in the second half of 2027.

What could go into the REIT

According to Maybank IB, the possible assets include two data centres on 20-year leases, plus logistics and warehouse buildings at E-Metro Logistics Park in Klang, a joint venture with ESR Group. A REIT would let the developer free up money for new projects and grow its rental income.

The note does not name the two data centres. Sime Darby Property's Bursa filings show two 20-year data centre leases at Elmina Business Park, both to Pearl Computing Malaysia, the company Google uses for its Malaysian land: about 49 acres agreed in May 2024 and about 77 acres in November 2024.

In June 2026, the developer launched a RM1.25b fund, the New Economy Venture, backed by the Employees Provident Fund, LTAT and Great Eastern. It invests in data centres built to suit a tenant and then leased out, and in industrial and logistics projects in the developer's townships. Its first two assets are in Elmina Business Park and City of Elmina, both on long leases and due for completion in the second half of 2027.

BBR North: an oil palm estate bought from a sister company

BBR North is the same 1,021.93 acres that a joint venture of Sime Darby Property and SD Guthrie Bhd agreed to buy in July 2026. SD Guthrie is the plantation group whose largest shareholder, Amanah Saham Bumiputera, also owns 32.7% of Sime Darby Property.

• The land: about 1,021.93 acres of freehold agricultural land in Bukit Kerayong Estate, Mukim Jeram, Kuala Selangor, made up of Lot 2894 and Lot 2896.
• The price: RM798.3m, or about RM17.93 psf, paid to SD Guthrie, the seller. TA Research called the price reasonable.
• The buyer: two companies under Kerayong Development Consortium Sdn Bhd, which Sime Darby Property and SD Guthrie own 50:50. Each partner puts in up to RM100m, and bank loans cover the rest.
• Approvals needed: the Estate Land Board and the Ministry of Economy. The deal was expected to complete in the second half of 2026.
• The plan: a heavy industrial park for logistics, manufacturing and renewable energy, near Port Klang, the West Coast Expressway and the East Coast Rail Link. It is the first part of a master plan covering at least 3,000 acres at Bukit Cheraka, Bukit Kerayong and Jalan Acob.
• Gross development value: not given by the company. TA Research estimates RM4b to RM5b.

The developer and SD Guthrie are also working together on Carey Island. Separately, shareholders approved on 3 November its purchase of 556.96 acres of freehold land in Senai, Johor, from SD Guthrie for RM418.5m, about RM17.25 psf.

Solar on spare land

According to Maybank IB, Sime Darby Property is also looking at solar farms on land it does not plan to develop, such as in Kedah, to sell green power to its industrial and data centre customers. The bank said such joint ventures could cut upfront spending and earn recurring income. It added that the heavy industrial plan has drawn interest from foreign investors, mainly from China.