SD Property launches RM1.25bil second real estate fund focusing on data centres [WATCH]

KUALA LUMPUR: Sime Darby Property Bhd (SD Property) has launched its second real estate development fund, New Economy Venture (NEV), with a fund size of up to RM1.25 billion and a five-year investment horizon.

Structured as a Syariah-compliant closed-end, discretionary investment platform, the fund will focus on investing in build-to-suit-to-lease data centres, as well as industrial and logistics development projects located within the group's key townships in Malaysia. The fund leverages the group's strategically located land bank and industrial ecosystems to meet growing demand for data centres and logistics facilities.

The NEV, which has achieved full capital commitment at its first closing, is backed by institutional investors including the Employees Provident Fund (EPF), the Armed Forces Fund Board (LTAT) and Great Eastern Life Assurance (Malaysia) Bhd.

SD Property, which serves as the fund's general partner and sponsor, has committed RM500.1 million as a co-investor at the first close.

Group managing director and chief executive officer Datuk Seri Azmir Merican said the fund marks a significant milestone in the group's transformation strategy.

"As general partner and manager to the fund, it will enable SD Property to diversify its recurring income streams through investment yield and fee-based income from the development of new economy assets such as data centres and warehouses, which are much in demand in the Malaysian real estate market," he said in a statement.

"The launch of NEV marks an important step in expanding SD Property's investment and fund management business. We remain focused on delivering long-term value for our investors and stakeholders," Azmir said.

NEV has already secured two seed assets located within the group's flagship developments, Elmina Business Park and City of Elmina, representing about 85 per cent of its target fund size, with both assets supported by long-term lease arrangements, providing income visibility and stability.

Construction has commenced on the two projects and is expected to be completed in the second half of 2027.

The launch of NEV forms part of SD Property's SHIFT32 strategy, which aims to expand its investment management business and strengthen recurring income through a capital-light growth model that leverages third-party institutional capital.

The group's investment and asset management division currently manages about RM4.4 billion in assets under management, supported by a long-term hyperscale data centre lease that began operations in April 2026.