SDPLOG reaches target RM1 bil in final close of industrial development fund

• The RM1 bil Shariah-compliant fund sponsored by Sime Darby Property and LOGOS Property consists of five other limited partners, including local institutional investors such as Permodalan Nasional Bhd.

ARA DAMANSARA (May 27): The Sime Darby Property Bhd and LOGOS SE Asia Pte Ltd (LOGOS Property) joint venture (SDPLOG) today announced the successful close of its industrial development fund.

The RM1 bil Shariah-compliant fund sponsored by Sime Darby Property and LOGOS Property consists of five other limited partners, including local institutional investors such as Permodalan Nasional Bhd via unit trust funds under its management, Kumpulan Wang Persaraan (Diperbadankan), alongside Great Eastern Life Assurance (Malaysia) Bhd and sophisticated investors through TA Islamic Private Investment Fund.

The capital committed enables SDPLOG to pursue the opportunity to develop sustainable, large-scale industrial and logistics real estate in Malaysia that is certified with green building standards, stated a media release by Sime Darby Property.

The fund focuses on key logistics, ecommerce, and cold-chain sectors, aligning with global trade trends and supply chain advancements.

“We’re pleased to receive strong support across a wide mix of institutional investors. The diversity of investors is a testament to the market recognition of our strength to deliver high risk adjusted returns and clear demand on the Shariah-compliant investment products that the joint venture can offer given Sime Darby Property’s strategic site offerings, Malaysia market expertise and synergy with our global fund management partnership with LOGOS,” said Sime Darby Property’s group managing director, Datuk Azmir Merican.

“We believe this will be a good foundation for the firm’s expansion in investment management product offerings,” he added.

The fund’s maiden project is the 177-acre E-Metro Logistics Park located within Sime Darby Property’s township of Bandar Bukit Raja, totalling 8 million sq ft of gross lettable area on completion.

The development includes built-to-specification and ready-built solutions for tenants to grow their businesses by expanding layout designs according to their commercial needs, including enhancements required for warehouse automation.

“Underpinned by strong growth in the macro-economic trends across Malaysia and ASEAN, the joint venture has continued to see strong demand for investment grade logistics and industrial assets,” said LOGOS head of Malaysia, David Aboud.  

“Our development fund is well placed to meet this demand in Malaysia, with our E-Metro Logistics Park a great example of the Fund delivering a modern, best-in-class solution for our tenant customers that also meets the highest ESG standards. We look forward to delivering on our strong pipeline of inquiries from international and local logistics tenants through this fund,” he added.

The fund also secured J&T Distribution Solution Sdn Bhd and a North Asia based logistics service provider as the first pre-committed tenants, and is currently in negotiations with various local and multi-national logistics players as prospective tenants.

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