Sime Darby Property to sell land in Kedah

Syndicated News
Written by Syndicated News

KUALA LUMPUR — Aug. 29, 2019: Sime Darby Property is looking to continue with its asset monetisation initiatives, with the aim of disposing of its non-core land of about 526.09 hectares in Kedah in the next two years.

Proceeds will be used, among others, for future developments and keeping the group’s net gearing ratio manageable.

“It’s not easy to find a buyer who are willing to buy all the land at once…. the land is scattered in several places, with one big piece measuring about 404.69 hectares.

“There must be monetisation (activities) for our non-core land as it is not giving us any profit,” said acting group CEO Datuk Wan Hashimi Albakri Wan Amin Jaffri to a media briefing on the group’s second quarter performance ended June 30.

Other asset monetisation initiatives for the current financial year include the disposal of 121.41 hectares of industrial land also in Kedah for RM88.9 million, the disposal of hospitality asset overseas and an apartment in that brought a total of RM290.9 million.

Chief transformation officer Fairuz Radi said the property developer’s industrial and logistics segment is expected to contribute towards the group’s target of achieving 10 per cent recurring income by the end of 2023.

Most of the company’s land bank is situated near residential areas, allowing it to focus on logistics and warehouse facilities development. — Bernama



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