In a statement, Sime Darby said its wholly-owned subsidiary Sime Darby Property Capital Holdings has partnered with LOGOS SE Asia to establish the platform to develop industrial and logistics assets in the country.
Sime Darby Properties, which will hold 51% equity of the JV company, will become the first public-listed developer in Malaysia to venture into the creation of development funds within the industrial and logistic sector.
The development fund collaboration initially aims to raise $200 million in seed money, according to Sime Darby’s filing with Bursa Malaysia. The fund will finance the planned development of industrial property in Klang, Selangor.
Sime Darby said it has allocated a 177-acre site within its prime Bandar Bukit Raja township in Klang for the purpose of the JV, which will focus on build-to-suit to lease or sell assets, primarily for clients in the logistics sector.
LOGOS Property’s experience in providing sustainable, integrated logistics solutions with green building certification will be replicated at the planned facilities, with the implementation of the latest in warehouse/logistics automation and construction technology, according to the announcement.
“The setting-up of fund management platforms is part of the value creation strategies we are introducing to broaden Sime Darby Property’s income streams in today’s challenging market,” said Sime Darby Property Group managing director Azmir Merican.
The firm is an Asia Pacific logistics specialist that manages all aspects of logistics real estate, including investment management, sourcing land or facilities, and undertaking development and asset management, on behalf of some of the world’s leading global real estate investors.
LOGOS Property is present in 10 countries across the Asia Pacific region and has a portfolio comprising over 8.9 million square meters of property owned and under development across 26 ventures.