KUALA LUMPUR (Dec 2): Sime Darby Property Bhd (KL:SIMEPROP) said it has signed an agreement for a 20-year lease of data-centre facilities to Pearl Computing Malaysia Sdn Bhd for up to RM5.6 billion, beginning as early as 2027.

The deal of up to RM5.6 billion is on top of an estimated RM2 billion data centre deal in May, also signed by Sime Darby Property and Pearl Computing, a wholly-owned unit of Singapore based Raiden APAC Pte Ltd. 

The property group is currently developing these additional data-centre facilities at its 77-acre site at Elmina Business Park — which it described as Klang Valley’s largest freehold industrial business hub.

“These facilities will be located in close proximity to Pearl Computing’s first data centre, which is currently under construction and targeted for completion in early 2026,” it said.

The build-and-lease agreement comes with options to renew for two additional five-year terms, it said. Similarly, the RM2 billion deal in May is also for a 20-year lease with options to renew for additional five-year terms. At the time, Sime Darby Property said the rent during the lease period “shall be determined based on the final gross development cost of the project, which is in turn to be determined upon the finalisation of the project’s final accounts”.

“This agreement reflects Sime Darby Property’s ability to deliver, own, and lease data centres that meet the demands of the global digital economy, exemplifying the technical sophistication and operational reliability required for mission- critical, complex infrastructure assets,” said Sime Darby Property’s group managing director Datuk Seri Azmir Merican in a statement.

“The presence of these data centres in Elmina Business Park enhances Selangor’s attractiveness as a key digital hub for Malaysia, buoyed by Selangor’s well-developed infrastructure, business-friendly policies, and collaborative efforts of authorities,” Azmir added.

The deal is also in line with Sime Darby Property’s strategy to increase its recurring income, and expand its investment and asset management (IAM) segment’s assets under management, the group said. Azmir, during the Sime Darby Property's earnings briefing in August, said the group had "aggressive plans... in terms of leasing our land,” group as it aimed to evolve into a real estate company with multiple income streams. 

Sime Darby Property operates three main segments, led by property development, investment and asset management (IAM), and leisure.

The IAM segment contributed RM95.83 million or just under 3% of its RM3.27 billion revenue in the nine months ended Sept 30, 2024 (9MFY2024).

At the time of writing, Sime Darby Property shares last traded up five sen or 3.5% to RM1.48 during the morning trading session on Monday, valuing the group at RM10.06 billion. The counter is up 136% this year.