UEM Sunrise cancels data centre plan, looks to sell Gerbang Nusajaya land

• Officer-in-charge and chief financial officer Hafizuddin Sulaiman said its plans with Logos to develop an up to 360 megawatt data centre in Gerbang Nusajaya fell through due to changes in Logos’ ownership and business direction.

KUALA LUMPUR (June 25): UEM Sunrise Bhd (KL:UEMS) no longer plans to build a data centre at the 74-acre site of its botched Logos Infrastructure Holdco Pte Ltd deal, with officer-in-charge and chief financial officer Hafizuddin Sulaiman saying that it is in talks to sell the land.

In an email response to The Edge, Hafizuddin said its plans with Logos to develop an up to 360 megawatt data centre in Gerbang Nusajaya fell through due to changes in Logos’ ownership and business direction.

In July 2024, ESR Group Ltd, the majority owner of Logos, bought the remaining 13.6% stake from the company’s founders.

“The partnership with Logos has lapsed following a change in Logos’ ownership, which led to a shift in its overall business focus and strategic direction,” he clarified via email, without disclosing when the agreement, signed in May 2024, lapsed.

News of the terminated deal first broke in May this year, when research firms reported that the deal was off, with the company citing “unfavourable operating environment”.

Hafizuddin said the company is now looking to sell the 74-acre land as part of its strategy to monetise non-core assets.

“We have received early expressions of interest and are in preliminary discussions with several potential buyers. At this stage, no binding agreements have been formalised. Any material developments will be disclosed in accordance with regulatory requirements,” he said in the email.

In the financial year ended Dec 31, 2024 (FY2024), the group undertook several portfolio rationalisation efforts. These included the sale of its remaining 40% stake in Aura Muhibah Sdn Bhd to KLK Land Sdn Bhd for RM386.2 million, and the disposal of a land parcel in East Ledang for RM144.9 million to a global data centre operator.

The group launched six projects with a total gross development value (GDV) of RM904.3 million last year, exceeding its RM800 million target, according to UEM Sunrise’s annual report.

As at end-December 2024, the group’s remaining landbank stood at 5,197.9 acres, carrying an estimated GDV of RM90.9 billion.

UEM Sunrise’s share price closed 1.46% or one sen higher at 69.5 sen on Tuesday after some nine million shares changed hands. This gave the group a market capitalisation of RM3.52 billion.

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