ARA DAMANSARA, 17 May 2018 – Sime Darby Property is partnering Japan’s Mitsui & Co., Ltd. and Mitsubishi Estate Co., Ltd. to develop and lease built-to-suit industrial facilities on a 39-acre site at the Bandar Bukit Raja integrated township in Klang, Selangor.
Sime Darby Property holds 50% of the joint venture company (“JV Co”), while the other 50% is held by Mitsui, through its Malaysian subsidiary (“Mitsui M-Co”).
Mitsubishi Estate Co. Ltd (“Mitsubishi Estate”) is expected to participate in this joint venture indirectly through its 40% holding in Mitsui M-Co. Mitsubishi Estate’s participation is still subject to the approval of licences and permits by the relevant regulatory authorities.
Sime Darby Property Managing Director Amrin Awaluddin said, “This joint-venture project with a GDV of approximately RM530 million is a significant step forward towards realising the full potential of Bandar Bukit Raja as a full-fledged integrated development. The three partners bring a wealth of experience and expertise which will help establish the township as a world-class commercial hub in Malaysia.”
“The partnership further reinforces our land management strategy in unlocking the value of our substantial land assets through direct development, strategic partnerships and joint-ventures or strategic monetisation. This key venture in the industrial logistics development will allow us to increase recurring income, act as a catalyst in attracting more economic activity in our township developments, increase employment in the local communities and spur demand for our housing products.”
The built-to-suit industrial facilities, comprising warehouses and logistics facilities, offer tailored features to suit operational requirements of business tenants. These includes specific floor loading capacity, optimum number of loading bays and height clearance. It will also be designed to ensure efficient maneuvering of vehicles.
Mitsui, one of the leading industrial logistics operator in the world, undertakes leasing of logistics facilities and factory development projects in Indonesia, as well as in Johor, Malaysia. The company has the experience and a good track record in developing office buildings, logistics facilities and engaging in REIT operations in Japan and overseas. Sime Darby Property will be able to enhance its earnings base by tapping into Mitsui’s vast experience and network in industrial logistics.
The Mitsubishi Estate group operates businesses in nine countries in the Asian and Oceania regions, contributing to solid real estate experience and expertise to create new business opportunities globally.
The built-to-suit project at Bandar Bukit Raja will be the third joint venture (JV) project for Mitsui and Mitsubishi Estate, besides logistics facility development projects in China and the United States.
MBK Real Estate Asia CEO Eiichi Tanabe said, “It is our great pleasure to start the project in this extremely strategic location, Bandar Bukit Raja. This development provides the solution and benefit to our clients who hold growing logistic demands both domestically and globally in this region. We believe the solid chemistry between the three parties will lead to success of the project and contribute to enriching each business portfolio.”
MBK Real Estate Asia is a wholly owned subsidiary of Mitsui & Co. Ltd and the real estate arm of Mitsui that undertakes property development and investment activities.
The rise in demand for general consumer goods and e-commerce in Malaysia have contributed towards the need for logistics facilities and warehouses. Bandar Bukit Raja is set to fulfil this demand as the integrated township is strategically located with close proximity to Port Klang, the largest port facility in Malaysia.
Bandar Bukit Raja is one of Sime Darby Property’s integrated and self-contained township in Klang. Since its launch in 2002, it has become a residential development synonymous with growth in value, spanning 4,405 acres with still over 90% of land area to be developed.
New developments in the pipeline for Bandar Bukit Raja include a 125-acre town park, the largest of its kind in North Klang, as well as enhancement of safety and security features.
Updates on Sime Darby Property activities and developments can be found on simedarbyproperty.com , Facebook (facebook.com/SimeDarbyProperty), Instagram (instagram.com/SimeDarbyProperty) and the Sime Darby Property Mobile App (available for download via the App Store and Google Play).