SimeProp’s industrial properties get a lift

PETALING JAYA: With the re-opening of Malaysia’s borders on April 1, Sime Darby Property Bhd (SimeProp), which is likely one of the largest industrial park homeowners, may entice overseas demand for its industrial properties.

In the meantime, the demand for its bread-and-butter township tasks is predicted to stay resilient, offering a robust basis for earnings, stated Maybank Funding Financial institution Group Analysis.

The analysis agency stated that of the RM2.8bil deliberate launches in 2022, 16% (or RM456mil) is derived from industrial merchandise.

Whereas landed properties stay the important thing gross sales contributor over the medium time period, the analysis agency identified that SimeProp deliberate to diversify its product launches to incorporate extra high-rise residential and industrial merchandise.

“Industrial developments will even be used to develop its recurring revenue.

“Administration is seeking to rework SimeProp into an actual property firm from being a pure play developer by 2025,” it stated.

It added that the intention was a 70:30 working revenue derived from its property growth and recurring revenue.

Industrial merchandise are at present the third-largest gross sales contributor, making up 18% of economic yr 2021’s gross sales.


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