KUALA LUMPUR (May 25): Sime Darby Property Bhd (SDP) has announced its proposed acquisition of three parcels of freehold land totalling 948.8 acres in Kapar, Klang for RM618 million, which has been approved by shareholders at its extraordinary general meeting (EGM) on Wednesday (May 24).
The Kapar land acquisition is in line with SDP’s SHIFT25 strategy, which aims to transform the company from a pure play property developer into a real estate company by broadening and diversifying its income streams. This strategic move will contribute positively to the growth of the group’s industrial and logistics development business.
SDP’s group managing director Datuk Azmir Merican said in a press release: “This latest land acquisition dovetails directly into our strategy of strengthening our industrial development portfolio. It is a significant milestone in our transformation journey, as we build a sustainable and innovative real estate group”.
The Kapar land is situated within Bandar Bukit Raja. Its proximity to major cities such as Klang and Shah Alam, coupled with excellent connectivity through the ongoing construction of the East Coast Rail Link and the West Coast Expressway, positions it as an ideal location for industrial and logistics businesses.
The proposed development of the Kapar land will be carried out in phases over a period of 10- to 15 years, with an estimated gross development value (GDV) of between RM5 billion and RM6 billion.
The group aims to create an integrated and sustainable industrial development, incorporating green initiatives to meet the growing demand for high-technology industrial facilities with sustainable building elements. It remains committed to delivering value-added projects that contribute to the growth of the local industrial and commercial sectors.
Azmir added: “We are excited about the potential of the Kapar land to contribute to our future earnings, and strengthen our pole position in the industrial development sector. With its strategic location and extensive acreage, the proposed development will offer attractive opportunities for businesses and drive economic growth”.
Prior to the EGM on Wednesday, SDP held its 50th annual general meeting (AGM) virtually, with all resolutions as set out in the notice of AGM dated April 20, 2023 approved by shareholders of the company via online voting.
Ordinary business included the receipt of the audited financial statements for the financial year ended Dec 31, 2022, during which the group recorded its highest sales achievement since its 2017 demerger of RM3.7 billion, supported by new launches with a GDV of RM2.6 billion.