Sime Darby Property's new fund to give RM62 mil annual profit boost by 2H2027 — HLIB

KUALA LUMPUR (June 10): Sime Darby Property Bhd's (KL:SIMEPROP) new venture fund should generate at least RM62 million in annual attributable net profit from the second half of 2027, according to Hong Leong Investment Bank.

"This is before factoring in additional upside from management fees, development / project management fees and development income. Other than this, the dilution of SDP’s stake from 100% to 50.1% also reduces," the house said in a note on Wednesday.

Recently, the property developer launched the RM1.25 billion shariah-compliant fund to invest in build-to-suit-to-lease data centres, industrial and logistics projects within its townships.

The fund has secured full capital commitments from the Employees Provident Fund (EPF), Armed Forces Fund Board (LTAT), and Great Eastern Life Assurance (Malaysia) Bhd, alongside Sime Darby Property’s RM500 million co-investment. The fund may also admit other limited partners at a later stage.

HLIB highlighted that seed assets likely include Phase 2 of Google data centres, with an estimated development cost of RM2.53 billion.

The research firm, however, believes the eventual exit route may be a sale to private yield investors rather than a REIT, citing confidentiality requirements tied to hyperscale tenants.

At the same time, Sime Darby Property is actively expanding other industrial parks — including Bandar Bukit Raja, Vision Business Park, and Bandar Universiti Pagoh — giving the fund plenty of opportunities to broaden its asset portfolio.

HLIB maintained its ‘buy’ call with a target price of RM2.10, while RHB also maintained ‘buy’ with a slightly higher target price of RM2.15.

At the time of writing, Sime Darby Property shares were down one sen or 0.70% at RM1.41, valuing the company at RM9.59 billion.

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