KUALA LUMPUR (Aug 11): SD Guthrie Bhd (KL:SDG) has opted to sell 556.96 acres of land in Kulai to Sime Darby Property Bhd (KL:SIMEPROP) for RM418.5 million after receiving no proposals for a joint industrial park development on the site.
In a Bursa Malaysia filing, the plantation group said it had sought partners in May 2025 for a joint industrial park development on the Kulai land. However, it received no proposals, mainly because the land is currently zoned for residential use.
Instead, two parties submitted bids to purchase the land outright.
Sime Darby Property was selected as the successful bidder after submitting the higher offer.
The deal covers 556.96 acres of freehold land in Mukim Senai, Kulai, comprising 434.99 acres from Lot 81287 and 121.97 acres from Lot 81288. Of Lot 81287, up to 16.56 acres is earmarked for a proposed public infrastructure project and is to be surrendered to the
government.
The disposal price was agreed between the company and Sime Darby Property on a “willing buyer, willing seller” basis and includes the public infrastructure project area.
Rahim & Co International valued the Kulai land, excluding the public infrastructure project area, at RM374.73 million, or RM15.92 per sq ft, as at Aug 6, 2026, using the comparison method.
The valuer said other valuation methods could not be used as the land has development potential but no approved development plans.
The board said the disposal price of RM17.25 per sq ft represents an 8.35% premium to the valuation and is expected to generate a net gain of about RM373.36 million.
SD Guthrie will use the bulk of the proceeds, or RM374.1 million, to partially repay its bank borrowings.
SD Guthrie said the proposed disposal will allow it to unlock the value of the Kulai land at current market prices while diversifying its earnings beyond its core palm oil business.
The land is seen as having strong development potential due to its location within the Johor-Singapore Special Economic Zone. The sale is also expected to strengthen SD Guthrie’s financial position by increasing its net assets through the disposal gain.
Sime Darby Property plans to develop the site into a sustainable township comprising landed residential and commercial developments, with an estimated gross development value of RM3 billion.
The first phase of the development is targeted for launch in 2028, while the overall project is expected to be completed over 10 to 15
years.
The proposed acquisition is considered a related party transaction due to the involvement of AmanahRaya Trustees Bhd — Amanah Saham
Bumiputera, a direct major shareholder of both SD Guthrie and Sime Darby Property..
As a result, SD Guthrie appointed Hong Leong Investment Bank Bhd, while Sime Darby Property appointed Alliance Islamic Bank Bhd as their respective independent advisers to advise their non-interested directors and shareholders on the deal and whether they should vote in favour of it.
The proposed deal is also subject to the approval of the Estate Land Board, the state authority and the Ministry of Economy.
SD Guthrie’s share price was up 0.44% to RM6.86 a share following the announcement. This values the company at RM47.44 billion. Sime Darby Property shares were down 0.74% on Tuesday to RM1.35, giving the company a market capitalisation of RM9.18 billion.