Sime Darby Property submits draft circular for RM418.5m Kulai land deal

PETALING JAYA (Sept 15): Sime Darby Property Bhd has submitted a draft circular to Bursa Malaysia Securities Bhd for clearance in relation to its proposed RM418.5 million acquisition of 556.96 acres of freehold land in Kulai, Johor.

In a Bursa Malaysia filing on Tuesday (Sept 15), the property developer said the transaction involves two parcels in Mukim Senai owned by SD Guthrie Bhd.

Sime Darby Property’s wholly owned subsidiary, Sime Darby Property (Kulai) Sdn Bhd, entered into a conditional sale and purchase agreement with SD Guthrie on Aug 11.

The acquisition is deemed a related-party transaction because AmanahRaya Trustees Bhd, as trustee for Amanah Saham Bumiputera, is a major shareholder of both companies.

Comprising part of Lot 81287 and the whole of Lot 81288, the land is located along Jalan Kulai–Kota Tinggi within Flagship Zone F of the Johor-Singapore Special Economic Zone.

Sime Darby Property plans to develop a township comprising landed residential and commercial properties on the site, with an estimated gross development value of about RM3 billion. The first phase is expected to be launched in 2028, with the development planned over 10 to 15 years.

The purchase price represents a 4.23% discount to the land’s appraised market value of RM437 million and will be funded through internally generated funds and borrowings.

The acquisition remains subject to approval from Sime Darby Property’s non-interested shareholders and the relevant authorities. Barring unforeseen circumstances, the company expects to complete the transaction by the second quarter of 2027.

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