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Sime Darby Property in talks with 1 or 2 partners for Malaysia Vision Valley, says MD

KUALA LUMPUR (Feb 27): Sime Darby Property Bhd (Sime Prop) is currently in talks with one or two partners to develop the Malaysia Vision Valley (MVV).

However, its group managing director Datuk Seri Amrin Awaluddin did not elaborate on the matter, and said announcements will be made when details are finalised.

To note, Sime Prop currently has about 3,196 acres of land for the MVV development, and has the option to acquire another approximately 8,793 acres of land from Sime Darby Bhd and Sime Darby Plantation Bhd, within five years from the date of its listing, with an option to extend for another three years.

"There's an option to exercise within five to eight years. So we don't intend to exercise immediately. We will exercise it as and when (we) want to develop," he said in a press conference held here today.

Noting that Sime Prop's gearing is still low, he does not see a problem digesting the lands over the period as the company will continuously assess the best use for each land parcel and dispose of non-strategic lands and will focus on its core area, namely the Klang Valley.

A cursory glance at its latest financial statement and a rough calculation showed that Sime Prop has a gearing ratio of 0.13 times.

Amrin noted that the company will be selling its landbanks in Kedah and Sabah, measuring about 1,600 acres and 300 acres respectively.

As at Dec 31, 2017, Sime Prop has about 20,743 acres of undeveloped land, with a gross development value of RM100 billion.

For the financial year ending June 30, 2018 (FY18), Sime Prop is targeting RM2 billion worth of sales.

As at Dec 31, 2017, Sime Prop has achieved RM1 billion of sales, with 89% of sales originated from the Klang Valley region, followed by Negeri Sembilan (8%) and Johor (3%).

At the noon break, shares in Sime Prop were up 4 sen to RM1.39 with 1.35 billion shares traded. — theedgemarkets.com

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