Sime Darby Property, partners unveil 1st tenants of Bandar Bukit Raja Industrial Gateway

Bandar Bukit Raja Industrial Gateway consists of build-tosuit industrial properties with world-class facilities

By FARA AISYAH / Pic By MUHD AMIN NAHARUL

SIME Darby Property Bhd together with Mitsui & Co Ltd and Mitsubishi Estate Co Ltd has unveiled the first two tenants of RM500 million Bandar Bukit Raja Industrial Gateway.

The tenants are global logistics service provider Leschaco (M) Sdn Bhd and consumer electronics chain stores Senheng Electric (KL) Sdn Bhd.

Sime Darby Property acting group CEO Datuk Wan Hashimi Albakri Wan Ahmad Amin Jaffri said the development will be undertaken by its joint-venture company, SDMIT Development Sdn Bhd.

“Both parties have invested RM100 million for each tenant. Sime Darby Property puts 50% of the investment, while Mitsui and Mitsubishi Estate put in the remaining 50%,” he told reporters at the groundbreaking ceremony in Klang, Selangor, yesterday.

He added that the company is in talks with potential tenants for the remaining eight plots of land as Leschaco and Senheng have occupied two plots.

Bandar Bukit Raja Industrial Gateway consists of build-to-suit industrial properties with worldclass facilities, spreading across 39 acres (15.78ha) of land.

The properties are built to match customers’ business requirements to realise the efficiency of operations, offering flexible spatial designs for high-degree of warehouse customisation, long lease option to optimise costs and the latest technology to suit technical and operational needs.

The development is located within proximity to airports, sea ports and highways.

MBK Real Estate Asia Pte Ltd — a subsidiary of Mitsui — CEO Eiichi Tanabe said the partners are confident the development will be successful.

“The Malaysian economy will further grow due to increase in demand from fast-moving consumer goods and e-commerce businesses, which brings consolidation and relocation needs for warehouses,” he said.

Wan Hashimi Albakri said the outlook for industrial property is better than other segments.

“There are huge challenges in the residential sector. There is a glut in the office segment as well as oversupply of retail spaces, so margins are thinning for developers.

“That is why we are moving to the industrial segment as it is going to be the future. It is also part of the Sime Darby Property’s expansion on new business,” he said.

Wan Hashimi Albakri added that the group will still focus on the residential development as it contributes 95% of Sime Darby Property’s revenue.

Meanwhile, the industrial properties are expected to contribute recurring income for the company over time.

“Recurring income does not happen overnight, and it involves a lot of capital expenditure. We have to wait for the sales of our townships to produce more industrial properties.”

He added that Sime Darby Property has over 1,000 acres of land in Bandar Bukit Raja that could be developed for industrial properties.