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Sime Darby plans to double land bank by 2015

KUALA LUMPUR: Sime Darby Bhd plans to double its oil palm plantation land bank by 2016 from 522,000 hectares it currently owns. President and Group Chief Executive Datuk Mohd Bakke Salleh said the
group was working towards a significantly increasing its land bank in Indonesia and Africa.

"In the market today, there are factors that are pulling down crude palm oil prices. Prices have been affected by developments such as the tax structure in Indonesia. There's a significant discount in soyoil and palm oil prices," he told a media briefing on Aug 29.

On the possibility of listing the plantation unit or any other units under the Sime Darby Group, Mohd Bakke said: "We're working on several options and it's difficult to be specific."

There are plans to park divisions or units under listed entities in the next few years, he added.

For the 2013 financial year, he said Sime Darby's capital expenditure would be at RM7.75 billion against RM6.3 billion in 2012. Mohd Bakke said Sime Darby achieved significant milestones in international
projects undertaken by its property division.

"The Battersea Power Station project in Britain offers an exciting new opportunity for high-growth property development overseas," he said.

A statement released by Sime Darby said the 15.8 hectare London project, the first major overseas property project for the company, had a gross development value of eight billion pounds.

Sime Darby, in consortium with SP Setia and the Employees Provident Fund, is undertaking the mixed development Battersea project. -- Bernama

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