Sime Darby Property in RM530m JV

By FARA AISYAH / Graphic By TMR

Sime Darby Property Bhd is collaborating with Japan’s Mitsui & Co Ltd and Mitsubishi Estate Co Ltd to develop and lease built-to-suit industrial facilities on a 15.78ha site at Bandar Bukit Raja integrated township in Klang, Selangor.

Sime Darby Property MD Datuk Seri Amrin Awaluddin said the three partners bring a wealth of experience and expertise which will help establish the township as a world-class commercial hub in Malaysia.

“This joint-venture (JV) project with a gross development value of about RM530 million is a significant step forward towards realising the full potential of Bandar Bukit Raja as a full-fledged integrated development.

“The partnership further reinforces our land management strategy in unlocking the value of our substantial land assets through direct development, strategic partnerships and JVs or strategic monetisation,” he said in a statement yesterday.

According to Amrin, the key venture in the industrial logistics development will allow the developer to increase recurring income, act as a catalyst in attracting more economic activity in its township developments, increase employment in the local communities, as well as spur demand for its housing products.

Sime Darby Property holds 50% of the JV company, while the other 50% is held by Mitsui through its Malaysian subsidiary Mitsui M-Co.

Mitsubishi is expected to participate in this JV indirectly through its 40% holding in Mitsui M-Co, however, its participation is still subject to approval of licences and permits by the relevant regulatory authorities.

Mitsui & Co’s wholly owned subsidiary MBK Real Estate Asia CEO Eiichi Tanabe said the development provides solutions and benefits to its clients who hold logistic demands both domestically and globally.

“We believe the solid chemistry between the three parties will enrich our business portfolio,” he added.

Sime Darby Property said the rise in demand for general consumer goods and e-commerce in Malaysia have contributed towards the need for more logistics facilities and warehouses.

Township’s strategic location, which sits close to Port Klang — the largest port facility in Malaysia — is set to fulfil this demand.

Bandar Bukit Raja is one of Sime Darby Property’s integrated and self-contained townships in Klang. Spanning 4,405 acres (1,782.6ha) with still over 90% of land area to be deve- loped, it has become a residential development synonymous with growth in value, since its inception in 2002.

The township will feature a 125-acre town park, as well as state-of-the-art safety and security operating system.