“Sime Darby Property explores recurring income assets and Carey Island land development in collaboration with SD Guthrie. Shares rise amid strategic plans.“
Kuala Lumpur, 21th Nov 2024, 02.22pm – Sime Darby Property Bhd (KL:SIMEPROP) is actively seeking high-quality assets that generate recurring income as part of its growth strategy, said Group Managing Director Datuk Seri Azmir Merican.
Speaking during a virtual media briefing following the group’s third-quarter results, Azmir stated, “We like quality assets, especially spaces that we are very familiar with. We are working on it,” without providing further details.
Additionally, Sime Darby Property is exploring opportunities to collaborate with SD Guthrie Bhd (KL:SDG) on potential land development in Carey Island, Selangor. SD Guthrie, a sister company previously known as Sime Darby Plantation Bhd, owns 11,615 hectares on Carey Island, 85% of the area.
“We are in talks with them,” Azmir noted. However, he emphasized that discussions are at an early stage and declined to speculate further.
The Selangor state government’s plans for a multi-billion-ringgit mega port on Carey Island could significantly enhance the land’s value. According to Maybank Investment Bank, the project is expected to raise SD Guthrie’s land valuation to RM7.1 billion, despite occupying only a fraction of the total acreage.
Sime Darby Property’s shares rose three sen, or 2.11%, to RM1.45 at Thursday’s midday trading break, bringing the group’s market capitalization to RM9.86 billion.
