KUALA LUMPUR (July 15): Sime Darby Property Bhd (KL:SIMEPROP) and its sister company SD Guthrie Bhd (KL:SDG) are moving forward with their joint venture (JV) to develop a mega industrial and logistics corridor in Kuala Selangor with the injection of 1,021.93 acres of land in Bukit Kerayong Estate, Kapar.
Their 50:50 joint venture vehicle, Kerayong Development Consortium Sdn Bhd, has signed agreements to acquire the freehold agricultural land from SD Guthrie for RM798.3 million, according to the groups' bourse filings. The RM798.3 million purchase consideration will be funded through a combination of the JV's internally generated funds and bank borrowings.
Under the deal, Sime Darby Property and SD Guthrie will each invest up to RM100 million for their respective equity stakes in the entity.
The transaction represents the JV's move towards the implementation phase of the larger master plan, which was announced in November 2025 to jointly develop 3,000 acres of land in Kuala Selangor into a next-generation heavy industrial park anchored by logistics and renewable energy infrastructure.
Because both entities share the same major institutional backer — Permodalan Nasional Bhd (PNB) and its parent Yayasan Pelaburan Bumiputra — the transaction is classified as a related-party deal. PNB's AmanahRaya Trustees Bhd–Amanah Saham Bumiputera (ART-ASB) holds a 32.7% direct interest in Sime Darby Property and a 37.48% controlling stake in SD Guthrie.
In a joint statement, Guthrie president and group chief executive officer Mohd Haris Mohd Arshad said the progress underscores Guthrie's commitment to unlocking value through strategic partnerships.
“This collaboration reflects our continued focus on monetising our land bank through synergistic alliances that generate sustainable, long-term returns. The Bukit Kerayong development represents a significant opportunity to catalyse economic growth in the region, support industrial and commercial activities, and create lasting value for stakeholders while aligning with national industrial aspirations,” he said.
“This next phase moves our partnership from vision to execution. By integrating Sime Darby Property's expertise in sustainable master planning with SD Guthrie's strategic land bank, we are building an industrial corridor equipped to meet evolving supply chain demands. This development will directly attract high-value investments, facilitate significant job creation, and reinforce Malaysia's industrial competitiveness," said Sime Darby Property group managing director and CEO Datuk Seri Azmir Merican.
Located within a high-growth zone near Port Klang and supported by the West Coast Expressway (WCE) and the upcoming East Coast Rail Link (ECRL), the development is envisioned to support high-volume industrial activity and play a pivotal role in reinforcing Selangor’s position as a leading industrial and logistics hub.
Sime Darby Property shares closed a sen or 0.74% higher at RM1.36 on Wednesday, valuing the company at RM9.25 billion. SD Guthrie shares closed 12 sen or 1.85% higher at RM6.62, giving it a market capitalisation of RM45.8 billion.