KUALA LUMPUR (March 3): Sime Darby Property Bhd (KL:SIMEPROP) will look to take on more data centre projects as a means of growing its recurring income, said group managing director and chief executive officer Datuk Seri Azmir Merican.

“We are active in this market. If the economics are right and it makes financial sense, we are open to looking at more projects as we aim to build a solid recurring income base,” Azmir said at a virtual media briefing on Monday following the group’s fourth-quarter results announcement. 

He added that the group’s two existing data centre projects will contribute to earnings over the next 20 years without providing specific financial guidance.

Sime Darby Property is currently working on data centre developments with Google-affiliated Pearl Computing Malaysia Sdn Bhd, a wholly owned unit of Singapore-based Raiden APAC Pte Ltd, with a total investment of RM7.6 billion. 

Raiden APAC is linked to an undisclosed US-headquartered multinational technology company.

The first project, announced in May 2024, involves a 49-acre hyperscale data centre in Elmina Business Park, slated for completion in 2026. The second, revealed in December 2024, is a RM5.6 billion investment for a 77-acre data centre at the same site, expected to be completed by 2027.

Both projects will operate under 20-year lease agreements with Pearl Computing Malaysia, with options to extend for two additional five-year terms.

For the financial year ended Dec 31, 2024 (FY2024), Sime Darby Property’s net profit rose 23.1% year-on-year to a record high of RM502.2 million, while annual revenue also reached a new peak of RM4.25 billion, up 23.7% from the previous year.

Its performance was driven by sustained sales momentum, higher site progress in the property development segment, and growing revenue contributions from its investment and asset management (IAM) and leisure segments.

Sime Darby Property surpassed its FY2024 sales target, achieving RM4.1 billion —17.14% higher than its initial goal of RM3.5 billion.

For FY2025, the group aims to secure RM3.6 billion in sales on RM4 billion worth of new launches. 

About RM1.7 billion of the new launches will be in the first half of the year.

According to Azmir, industrial projects will contribute 31% of sales, followed by landed residential at 28%, high-rise residential at 27%, and commercial properties at 14%. 

“If [market] sentiment remains positive, we will revise our targets accordingly,” he added.

Shares of Sime Darby Property were down slightly at RM1.39 at the midday break on Monday, giving it a market capitalisation of RM9.45 billion.

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