KUALA LUMPUR: The Sime Darby Property Berhad and LOGOS SE Asia Pte Ltd (LOGOS Property) joint venture (SDPLOG) has successfully closed its RM1 billion industrial development fund.
In a statement, Sime Darby Property said that the fund's capital was raised from local institutional players, private equity funds, and insurance funds, demonstrating confidence in a range of investors for this type of investment.
This fund, jointly sponsored by Sime Darby Property and LOGOS Property, also consists of five other partners, including Permodalan Nasional Berhad (PNB), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), Great Eastern Life Assurance (Malaysia) Berhad, and sophisticated investors through the TA Islamic Private Investment Fund.
The primary project for this fund is the development of a 177-acre e-metro logistics park situated within Sime Darby Property's Bandar Bukit Raja township.
Upon completion, this park will offer a total of eight million square feet of gross lettable area (GLA). The development is tailored to provide built-to-specification and ready-built solutions, allowing tenants to customise their layouts according to their business requirements, including provisions for warehouse automation, Sime Darby Property said in a statement.
Construction is already underway for Metrohubs 1 and 2 within the e-metro logistics park, with about 1.2 million sq ft and 800,000 sq ft in GLA, respectively.
According to the statement, Metrohub 2 is scheduled for completion in the first half of 2024, while Metrohub 1 is expected to be completed by the year's end.
J&T Distribution Solution Sdn Bhd and a North Asia-based logistics service provider are among the initial pre-committed tenants, with negotiations ongoing with various local and multinational logistics players.
Sime Darby Property said the committed capital enables SDPLOG to continue developing sustainable, large-scale industrial and logistics real estate in Malaysia, adhering to green building standards, it said.
The company's group managing director Datuk Azmir Merican said the diversity of investors is a testament to the market's recognition of the company's strength to deliver high risk-adjusted returns and clear demand for Shariah-compliant investment products.
"We believe this will be a good foundation for the firm's expansion in investment management product offerings," he said.
David Aboud, the head of Malaysia at LOGOS, highlighted the robust demand for investment-grade logistics and industrial assets propelled by macroeconomic shifts in Malaysia and ASEAN.
He emphasised the fund's adeptness in addressing this demand, citing the E-Metro Logistics Park as a prime example of a contemporary, top-tier solution adhering to the highest ESG (environmental, social, and governance) standards.