KUALA LUMPUR (May 17): Sime Darby Property Bhd is partnering Japan's Mitsui & Co Ltd and Mitsubishi Estate Co Ltd to jointly develop and lease built-to-suit industrial facilities with a gross development value (GDV) of RM530 million at Sime Darby Property's Bandar Bukit Raja township in Klang, Selangor.

In a statement today, Sime Darby Property managing director Amrin Awaluddin said the partnership is part of the group's land management strategy in unlocking the value of its substantial land assets through direct development, strategic partnerships and joint ventures (JVs) or strategic monetisation.

He added that Sime Darby Property will be able to enhance its earnings base by tapping into Mitsui's vast experience and network in industrial logistics.

"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," said Amrin.

Under the latest JV, Sime Darby Property holds a 50% stake in the JV company and Mitsui the remaining 50% through its Malaysian subsidiary Mitsui M-Co.

Sime Darby Property said Mitsubishi Estate is expected to participate in this JV indirectly through its 40% holding in Mitsui M-Co. Mitsubishi Estate's participation is still subject to approval of licences and permits by the relevant regulatory authorities.

Spanning 39 acres, the built-to-suit industrial facilities will feature warehouses and logistics facilities, offering tailored features to suit operational requirements of business tenants.

These include specific floor loading capacity, optimum number of loading bays and height clearance.

MBK Real Estate Asia chief executive officer Eiichi Tanabe said the development provides the solution and benefit to its clients, who hold growing logistic demands both domestically and globally in this region.

MBK Real Estate Asia is a wholly-owned subsidiary of Mitsui that undertakes property development and investment activities.

This project marks the third overseas JV between Mitsui and Mitsubishi Estate. They had previously collaborated in developing logistics facility projects in China and the US.

"Mitsubishi Estate will continue to actively pursue overseas real estate projects by utilising its real estate development know-how and product planning capabilities that have been cultivated in various countries around the globe," said Mitsubishi Estate.

Launched in 2002, Bandar Bukit Raja spans 4,405 acres with still over 90% of land area to be developed.

At 3.17pm, Sime Darby Property shares were up 2 sen or 1.36% at RM1.49, with 2.93 million shares done, bringing a market capitalisation of RM10.13 billion.