Permodalan Nasional Berhad and KWAP Back Sime Darby LOGOS Industrial Development Fund

Posted on 06/24/2022

The Sime Darby Property Berhad and LOGOS SE Asia Pte. Ltd. joint venture (SDPLOG) had the first close of its inaugural Industrial Development Fund. With 70% in capital commitments secured at first close for a fund size of up to US$ 250 million, the Shariah-compliant Fund will be anchored by Permodalan Nasional Berhad and unit trust funds under its management (PNB) and Kumpulan Wang Persaraan (Diperbadankan) (KWAP). This is alongside Sime Darby Property and LOGOS Property as sponsors of and co-investors in the Fund, which will enable the development of logistics assets over the next three years, in accordance with the Industrial Development Fund’s business plan. The immediate capital available to the Industrial Development Fund for deployment as at first close is RM500 million (~US$114 million).

Funding from investors will support the development of sustainable, large-scale, integrated modern logistics real estate assets in Malaysia with green building certification. At its maiden site, the 177-acre E-Metro Logistics Park, the Fund is set to deliver logistics assets spanning 8 million square feet in gross lettable area. Located in Sime Darby Property’s township of Bandar Bukit Raja, Klang, Selangor, the E-Metro Logistics Park will feature a combination of ready-built or built-to-specification facilities.

Sime Darby Property’s Group Managing Director, Dato’ Azmir Merican said that the Fund is capitalizing on the sub-themes of logistics and warehousing, e-commerce, as well as cold-chain, which are in high demand, consistent with global trade flows and supply chain developments, as well as rising e-commerce growth alongside the shift in consumer preferences. “We are confident that the overall interest in logistics as an asset class will increase. The E-Metro Logistics Park is strategically located and connected to highways, seaports, and airports, making it an ideal location for regional supply chain hubs,” he said in a press release.

On September 29, 2021, Sime Darby Property Berhad and LOGOS SE Asia Pte. Ltd. entered into a shareholders’ agreement to form a joint venture (SDPLOG) to establish a platform focusing on developing and investing in assets primarily in the Industrial & Logistics sector. Sime Darby Property holds 51% equity of SDPLOG and is the first public-listed property developer in Malaysia to venture into the creation of development funds within the Industrial & Logistics sector. The remainder 49% equity of SDPLOG is held by LOGOS Property.

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