Sime Darby Property to build and lease hyperscale data centre in Elmina Business Park in RM2b deal

23 May 2024

Sime Darby Property Bhd (SD Property) has entered into a build and lease agreement with Pearl Computing Malaysia Sdn Bhd, a wholly-owned subsidiary of a multinational technology company, to develop and lease a hyperscale data centre valued at RM2 billion in Elmina Business Park.

According to SD Property, the data centre will be located on about 19.8 hectares of land within Elmina Business Park.

The project is set to break ground in the second quarter of 2024 (2Q24), with construction completion targeted for the financial year ending Dec 31, 2026.

“Following completion of construction, the parties will enter into a 20-year lease valued at up to RM2 billion, with options to renew for two additional five-year terms,” it said.

SD Property group managing director Datuk Azmir Merican expressed enthusiasm about entering the data centre market for the first time, noting that it is quickly becoming a significant asset class in real estate, and highlighting that they are well-positioned for this expansion.

“This project allows us to broaden our Investment & Asset Management portfolio, aligning with our SHIFT25 strategy to grow recurring income,” he said in a statement.

Azmir also said that the facility will enhance Elmina Business Park’s reputation as a top industrial hub for technology companies, both locally and internationally.

“This achievement reflects the effort invested in its realisation. We would also like to acknowledge local municipal authorities, government agencies, and utility providers who have supported us, as their contributions have been instrumental in advancing this project, which is of national significance,” he added.

SD Property’s share price closed at RM1.16, marking an 8.41 percent increase or a rise of 9 sen from its previous closing price of RM1.07. This gives it a market capitalisation of RM7.89 billion.

Source: NST