Daily Digest · Tuesday, 4 August 2026· Updated: about 3 hours ago
Sunway Construction secures RM1.02 bil Johor data centre contract; Setia Awan Land opens RM1.4 bil industrial park sales gallery
Industrial investment dominated Malaysian property news on Aug 3, led by Sunway Construction Group Bhd's RM1.02 billion Johor data centre contract and Setia Awan Land's launch of sales for its 447-acre industrial park in Perak. Elsewhere, land transactions continued to reshape development pipelines, while Tower Real Estate Investment Trust (Tower REIT) reported stronger earnings as occupancy and rental rates improved.
Quick takes
- Tower REIT posted a 73% rise in FY2026 net profit to RM12.46 million as higher occupancy, stronger rental rates and lower interest expense lifted earnings. Total distributions increased to 1.90 sen per unit.
- S P Setia Bhd and Mah Sing Group Bhd extended the conditional period for Mah Sing's RM273.5 million acquisition of 275.40 acres of freehold land in Mukim Beranang, Hulu Langat, by three months to Nov 2, with completion now due by Dec 28.
- RHB Research raised its target price on Eastern & Oriental Bhd to RM1.08 from RM1.05 after the developer's RM189.9 million joint venture acquisition of a 1.4-acre Jalan Kia Peng site near KLCC at RM3,106 per sq ft.
- Nestcon Bhd secured a RM74.5 million contract from Exsim to build a 28-storey affordable apartment project in Kwasa Damansara, Selangor, with completion targeted for January 2029.
- The Malaysia Retail Chain Association and seven other trade bodies urged the government to defer the 6% service tax on utilities billed to mall tenants, which the associations said is being applied retrospectively from July 1.
Sunway Construction secures RM1.02 bil Johor data centre contract as Setia Awan Land launches RM1.4 bil industrial park
Sunway Construction Group secured a RM1.02 billion engineering contract for a data centre in Johor, the company said in a Bursa Malaysia filing on Aug 3. The award covers mechanical, electrical and plumbing works and serves as the notice to proceed. The client was identified only as a US-headquartered multinational technology company whose identity was not disclosed.
The award lifted Sunway Construction's FY2027 new order wins to RM5.8 billion, with an outstanding order book of RM10.4 billion. Sunway Construction shares were down 1.1% at Monday's midday break at RM7.83. The stock has gained more than 37% year to date.
Setia Awan Land also opened the sales gallery for its RM1.4 billion Tanjong Malim Hi-Tech Park on Aug 2 ahead of its official launch in September. The 447-acre development, beside Proton City within the Automotive High-Tech Valley, will be built over five phases. The first phase spans 103 acres across 14 industrial plots priced from RM55 per sq ft, while the second phase, Ionera, comprises 247 acres of commercial shoplots.
Why it matters
Data centres continue to underpin construction order books, while new industrial parks are expanding to capture manufacturing investment linked to the Automotive High-Tech Valley and broader supply-chain diversification. Together, the announcements reinforce industrial real estate as one of Malaysia's strongest-performing property segments.
Tower REIT FY2026 net profit jumps 73% on stronger occupancy and rental rates
Tower REIT reported FY2026 net profit of RM12.46 million for the financial year ended June 30, 2026, up 73% from a year earlier, according to a Bursa Malaysia filing on Aug 3. Revenue rose 7.9% to RM42.0 million, while earnings per unit improved to 2.54 sen from 1.47 sen.
The manager attributed the stronger performance to higher occupancy, improved rental rates at Menara HLX and Menara Guoco, lower interest expense and a fair value gain following the annual revaluation of Menara HLX, Plaza Zurich and Menara Guoco. The portfolio was valued at RM807 million by Rahim & Co International.
A final distribution of 0.60 sen per unit lifted total FY2026 distributions to 1.90 sen from 1.22 sen previously. Fourth-quarter net profit increased to RM3.74 million from RM962,000 a year earlier, while net asset value stood at RM1.1685 per unit as at June 30.
Why it matters
The results suggest leasing conditions for better-quality Kuala Lumpur office buildings continue to improve. Higher occupancy, positive rental reversions and rising distributions point to a gradual recovery for office-focused REITs after several challenging years.
Also on the radar today
Ahmad Zaki Resources
Ahmad Zaki Resources Bhd said its wholly owned subsidiary, Ahmad Zaki Sdn Bhd, was served with a winding-up petition over an alleged RM3.94 million unpaid sum relating to the East Klang Valley Expressway project.
Asia Green Group
Asia Green Group launched a mid-term stay management programme at The Pier in Bayan Lepas, Penang, introducing professionally managed medium-term rental services at the waterfront development.
Today's roundup
Industrial and data centre developments dominated Monday's property news, led by Sunway Construction's RM1.02 billion Johor contract and Setia Awan Land's RM1.4 billion industrial park. Land transactions remained active as developers continued to replenish development pipelines, while Tower REIT's stronger earnings pointed to improving fundamentals for better-quality Kuala Lumpur office assets. Together, the day's announcements reinforced the continued strength of industrial property alongside tentative signs of recovery in the office market.
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