Sime Darby Property launches Shariah-compliant New Economy Venture fund targeting up to RM1.25b

PETALING JAYA {June 9}: Sime Darby Property Bhd has launched its second real estate development fund, the New Economy Venture (NEV), with a target fund size of up to RM1.25 billion focused on data centres, industrial and logistics assets, building on its Industrial Development Fund launched in 2022.

The discretionary, closed-end, Shariah-compliant fund secured 100% capital commitment at its first closing from institutional investors including the Employees Provident Fund (EPF), Lembaga Tabung Angkatan Tentera (LTAT) and Great Eastern Life Assurance (Malaysia) Bhd. Sime Darby Property has committed RM500.1 million as a co-investor at first close and will act as the fund’s general partner and sponsor.

The fund supports the group’s SHIFT32 strategy to grow recurring income streams via investment yield and fee-based income, said group managing director and CEO Datuk Seri Azmir Merican in a press statement today,

“The launch of the New Economy Venture marks a significant milestone in our transformation journey under the SHIFT32 strategy. As general partner and manager, the fund enables us to diversify into new economy assets such as data centres and warehouses, which are seeing strong demand in Malaysia,” he said.

The NEV fund will leverage Sime Darby Property’s land bank, master developer capabilities and industrial ecosystems, which the group said are well-positioned to support growing demand for new economy assets.

At launch, the fund secured two seed assets located in Elmina Business Park and the City of Elmina in Selangor, representing about 85% of its target size. Both assets are supported by long-term lease arrangements, providing income visibility, with construction underway and completion targeted in the second half of 2027.

The initiative aligns with the group’s capital-light strategy by leveraging third-party institutional capital to accelerate development within its townships. Sime Darby Property’s investment and asset management division currently manages approximately RM4.4 billion in assets under management, supported by a long-term hyperscale data centre lease that came on stream in April.

The developer said the participation of Great Eastern Life Assurance (Malaysia) Bhd, a returning investor from the Industrial Development Fund, reflects continued confidence in the group’s ability to originate, develop and manage institutional-grade real estate assets.

Separately, Azmir added: “We remain focused on delivering long-term value for our investors and stakeholders”.

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