Sime Darby Property and LOGOS SE Asia create a fund management platform to develop industrial and logistics assets


PETALING JAYA (September 29): Sime Darby Property (SD Property) and Asia-Pacific logistics specialist LOGOS Property Group Ltd have formed a joint venture to establish a fund management platform to invest and develop ‘tailor-made for rent or sell »industrial and logistics assets in Malaysia.

The 100% subsidiary of SD Property Sime Darby Property (Capital Holdings) Pte Ltd and the 100% subsidiary of LOGOS Property LOGOS SE Asia Pte Ltd today signed a shareholders agreement to form a joint venture named Industrial Joint Venture ( Holdings) Pte Ltd. JV Company to Establish Fund Management Platform to Manage Logistics Industry Funds and Offer Development Services

Under the agreement, SD Property will own 51% of the capital of the company JV, while LOGOS will hold the remaining 49%.

The collaboration aims to raise US $ 200 million (approximately RM 850 million) in seed capital from accredited and institutional investors to finance the planned development of industrial property at Bukit Raja in Klang, Selangor.

JV will focus on “build-to-rent or sell” assets, primarily for customers in the logistics industry.

To this end, SD Property has allocated a 177-acre site in its Township of Bandar Bukit Raja in Klang, Selangor to lead this initiative. Bandar Bukit Raja was selected to leverage its strength as an established industrial township given its strategic connectivity to critical infrastructure in the Klang Valley.

LOGOS Property’s experience in providing sustainable and integrated logistics solutions with green building certification will be replicated in these facilities, with the implementation of the latest automation and warehouse / logistics construction technologies.

In a virtual press conference today, SD Property Datuk Managing Director Azmir Merican said the joint venture with LOGOS comes at the right time, as the industrial and logistics segments become increasingly important since the pandemic.

“The global demand for e-commerce is very strong (especially during the pandemic) and we believe that it is a very strong pivot for Sime Darby Property to seriously examine the industrial property segment as well as to diversify our real estate company”, he said, adding that the joint venture is also a strategy for a wider recurring revenue base by 2025.

Azmir added that over the past year, the growth of e-commerce propelled by the COVID-19 pandemic has resulted in a shortage of quality warehouses for businesses to grow. This has increased the demand for better logistics products, infrastructure and efficiency in supply chain management.

“The main products that we will be offering through the fund management platform are intended to support local and regional e-commerce networks, as developments will be strategically located with easy access to major highways and connectivity to ports and airports.” , did he declare.

LOGOS Property Manager in Malaysia, David Aboud, noted that the reason for choosing Bandar Bukit Raya is its strategic location and connectivity to critical infrastructure of highways, ports and airports via the West Coast Highway.

“The Asia-Pacific logistics sector has experienced significant growth in recent years, supported by an increase in e-commerce, manufacturing and diversification into decentralized supply chains,” he said. declared.

Aboud added that in Malaysia, this is causing a significant increase in demand from multinational and domestic customers for high-quality logistics space, which is currently not well served by the majority of inventory available in the market.

Especially with Covid-19, the importance of logistics and industrial segments was increasingly evident as the demand for better logistics products, infrastructure and efficiency in supply chain management became detrimental, a he declared.

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