KUALA LUMPUR (Nov 4): Sime Darby Property Bhd (KL:SIMEPROP) is laying the groundwork for its future growth, as it explores two primary avenues for expansion, including a potential real estate investment trust (REIT) listing by 2028, according to Maybank Investment Bank.

The house highlighted that the property developer is exploring a REIT focusing on domestic industrial and data centre assets to unlock asset value, facilitate capital recycling into new developments and grow recurring income.

“Its potential asset pipeline includes two data centres backed by 20-year leases, alongside logistics and warehouse assets at E-Metro Logistics Park in Klang, developed through its joint venture with ESR Group,” said the research house in a note after a recent briefing with the group.

Additionally, Maybank IB said Sime Darby Property is also expanding its operations on two fronts: past its light and medium industrial developments and into heavy industrial parks through joint ventures, and solar energy projects to support industrial and data centre customers.

Sime Darby Property’s expansion into heavy industrial parks is led by its 1,021.9-acre BBR North industrial and logistics hub in Mukim Jeram, Kuala Selangor, planned to launch in the second half of 2027. This project is part of a joint venture with SD Guthrie Bhd (KL:SDG).

Maybank IB added that the company has also seen interest from foreign investors, particularly those from China.

For solar developments, the research house noted that Sime Darby Property is exploring developments for its non-core land bank, such as Kedah, to supply green energy to industrial and data centre customers.

“We view this positively, as solar joint ventures could minimise upfront capital commitments, unlock land value and generate recurring income, while offering integrated industrial solutions that differentiate Sime Darby Property from its peers,” said the research house.