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“Sime Darby Property’s Elmina Business Park data centre projects could generate RM7.6 billion in recurring lease income as the group expands its industrial asset portfolio.”
Kuala Lumpur, 09th June 2026, 02.30pm – Sime Darby Property Bhd is strengthening its recurring income portfolio through large-scale data centre and industrial assets, with projects at Elmina Business Park potentially generating up to RM7.6 billion in lease income over the long term.
The developments form part of the group’s strategy to expand its investment and asset management (IAM) segment as shareholders prepare to convene for the company’s 53rd annual general meeting (AGM) on June 10.
According to the group’s 2025 Integrated Annual Report and Bursa Malaysia filings, Sime Darby Property has entered into two build-and-lease agreements with Pearl Computing Malaysia Sdn Bhd, a wholly owned subsidiary of Singapore-based Raiden APAC Pte Ltd, for hyperscale data centre developments at Elmina Business Park in Selangor.
The first agreement, announced in May 2024, involves a 49-acre site, with Gamuda Engineering Sdn Bhd awarded construction contracts worth RM1.74 billion.
A second agreement signed in December 2024 covers an adjacent 77-acre parcel and carries an estimated lease value of up to RM5.6 billion over a 20-year period.
Combined, the two projects represent a potential recurring lease income pipeline of up to RM7.6 billion, according to the group’s disclosures.
Once fully completed and stabilised, the assets are expected to contribute approximately RM380 million in annual recurring income.
Recurring Income Segment Strengthens
Sime Darby Property’s IAM segment recorded revenue of RM183.9 million in FY2025, representing a 32.1% increase from the previous year.
The segment also returned to profitability with a profit before tax of RM48.1 million, compared with a loss before tax of RM11.4 million recorded in FY2024.
Under its SHIFT25 and SHIFT32 strategies, the group aims for recurring income to contribute approximately 30% of total earnings over the longer term, supported by investment properties, industrial developments and logistics assets.
FY2025 Sales Exceed Target
For the financial year ended Dec 31, 2025, Sime Darby Property posted revenue of RM4.18 billion and profit before tax of RM803.4 million.
Profit after tax and minority interests rose 3.1% to RM517.7 million.
The group achieved RM4.2 billion in sales during the year, surpassing its internal target of RM3.6 billion. Unbilled sales stood at RM3.9 billion, providing earnings visibility over the next three years.
Industrial developments continued to gain importance, accounting for 37% of launched gross development value and 36% of total sales.
During the year, the group also opened KLGCC Mall in Bukit Kiara and completed the acquisition of Metrohub 1 and Metrohub 2 logistics warehouses in Bandar Bukit Raja, both of which have achieved full occupancy.
AGM to Consider Board and Dividend Matters
At the AGM, shareholders will review the group’s FY2025 results and consider several resolutions, including the re-election of directors, approval of non-executive directors’ fees and the reappointment of PricewaterhouseCoopers PLT as external auditors.
The board has proposed a final dividend of 3.2 sen per share, representing a payout ratio of 42%.
MetProperty Analysis
Sime Darby Property’s increasing exposure to data centres and logistics assets reflects a broader shift among major Malaysian developers towards recurring income businesses.
While residential development remains the group’s core earnings driver, industrial properties, hyperscale data centres and investment assets are becoming increasingly important sources of stable cash flow.
As demand for digital infrastructure and logistics facilities continues to grow, recurring income assets could play a larger role in reducing earnings volatility and supporting long-term growth for property developers.
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