Sime Darby Property to acquire 760 acres of land from Sime Darby for RM280m

Sime Darby Property to acquire 760 acres of land from Sime Darby for RM280m
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KUALA LUMPUR (Oct 27): Sime Darby Property Bhd has proposed to acquire 760 acres of land with development potential in Labu, Negeri Sembilan, from sister company Sime Darby Bhd for RM280 million.

The land is located within the regional development of Malaysia Vision Valley 2.0 and adjacent to Bandar Enstek. It is directly connected to the Nilai-Labu-Enstek Road, which is scheduled to be completed in 2023.

Sime Darby Property said the proposed acquisition is imperative for the group in securing strategic land banks for its development pipeline in Malaysia Vision Valley.

“Taking into consideration the current industrial project development surrounding the area and the anticipated completion of the Nilai-Labu-Enstek road, the said land will be strategically positioned to be developed into a holistic industrial development scheme,” it said in a bourse filing.

Separately, Sime Darby said the proposed disposal is in line with its strategy to unlock value of its non-core assets through monetisation and opportunistic divestments.

“Sime Darby will continue to explore strategic opportunities in relation to the remaining entire Malaysian Vision Valey land to ensure value maximisation for the shareholders,” it added.

Sime Darby Property said the purchase price was arrived at based on the joint valuation conducted by both groups in September.

It added that the acquisition will be funded via a combination of internally-generated funds and bank borrowings.

Sime Darby Property’s share price finished 3.5 sen or 5.04% higher at 73 sen, valuing the group at RM4.96 billion. The counter registered a volume of 9.13 million shares.

Shares in Sime Darby settled unchanged at RM2.30, giving it a market capitalisation of RM15.64 billion. The stock saw 3.3 million shares changing hands.

S Kanagaraju