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Malaysia-based Sime Darby Property has launched a 2.6 billion ringgit (USD 636.63 million) sukuk programme to support the development of hyperscale data centres and industrial and logistics assets under its New Economy Venture platform. The Green Sukuk will partly finance data centres at Elmina Business Park and a build-to-suit distribution warehouse in the City of Elmina. Both projects are backed by long-term lease agreements with anchor tenants, reflecting the company's strategy to expand its recurring income portfolio while supporting Malaysia's growing digital infrastructure and logistics sectors.
Malaysia's Sime Darby Property has established a 2.6 billion ringgit (USD 636.63 million) sukuk programme through its New Economy Venture (NEV) platform to finance the development of hyperscale data centres along with industrial and logistics assets. The initiative is aimed at strengthening the company's presence in digital infrastructure while creating long-term income-generating assets.
Under the programme, the company will issue a Green Sukuk to partly finance the construction of hyperscale data centres at Elmina Business Park, Sime Darby Property's flagship industrial township in Malaysia. The facilities are supported by a 20-year lease agreement with a global multinational technology company, providing long-term revenue visibility for the project.
Part of the proceeds will also be used to finance a build-to-suit distribution warehouse in the City of Elmina. The warehouse will feature an advanced automated storage and retrieval system and is backed by a 15-year lease with a local hypermarket operator. Construction of the logistics facility is targeted for completion by the end of 2027.
The sukuk programme has been established by Sime Darby Property NEV (Holdings) Sdn Bhd, which was launched as part of the group's New Economy Venture platform to focus on build-to-suit-to-lease data centres and industrial and logistics developments. The platform was introduced in the past month with a 1.25 billion ringgit Shariah-compliant fund that secured full capital commitments from institutional investors during its first closing. It currently has two seed assets located in Elmina Business Park and the City of Elmina.
The company said the financing structure combines sukuk funding with an institutional real estate private equity model. Group Managing Director and Chief Executive Azmir Merican stated that Sime Darby Property has become the first developer in Malaysia to adopt this approach, supported by a Gold-rated Green Finance Framework, reinforcing the company's focus on sustainable growth and disciplined capital management.
The Green Finance Framework aligns with Malaysia's Sustainable and Responsible Investment Sukuk Framework, ASEAN Green Bond Standards and the International Capital Market Association's Green Bond Principles. The transaction also involves Maybank Investment Bank Berhad as principal adviser, with Maybank Investment Bank and OCBC Al-Amin Bank Berhad serving as joint lead managers. Credit Guarantee & Investment Facility has been appointed as the financial guarantor for the guaranteed tranche.
The latest financing initiative builds on Sime Darby Property's expansion into the data centre sector over the past two years. The company previously secured agreements to develop multiple hyperscale data centres at Elmina Business Park through long-term build-and-lease arrangements, strengthening its strategy of increasing recurring income from investment assets alongside its traditional property development business.
Source Reuters
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