Malaysia’s Sime Darby Property launches US$640 million sukuk to fund data centres, logistics assets

[KUALA LUMPUR] Sime Darby Property Bhd has launched a programme to issue RM2.6 billion (US$640 million) in sukuk – a type of Islamic debt instrument – to finance a new generation of data centres and industrial assets.

This marks a significant step in the group’s strategy to build recurring income from Malaysia’s fast-growing digital infrastructure sector.

The programme, established by Sime Darby Property NEV under the group’s New Economy Venture (NEV) platform, will fund the development of build-to-suit-to-lease hyperscale data centres as well as industrial and logistics facilities, backed by long-term tenancy agreements with multinational technology companies and major domestic retailers.

In a statement on Tuesday (Jul 28), Sime Darby Property described the green sukuk as “the first of its kind in the world”, dedicated to financing data centre infrastructure.

Proceeds from the programme will partly finance the construction of hyperscale data centres at Elmina Business Park, Sime Darby Property’s flagship industrial township in Selangor.

The facilities are expected to be completed by 2027 and are supported by a 20-year lease with a global technology company, providing long-term income visibility.

The sukuk will also partly fund the development of a build-to-suit automated distribution warehouse in the City of Elmina.

The warehouse, equipped with advanced automated storage and retrieval systems, has secured a 15-year lease with a local hypermarket operator and is targeted for completion by the end of 2027.

The initiative underscores Sime Darby Property’s push beyond its traditional property development business into institutional-grade assets capable of generating stable, recurring revenue while supporting Malaysia’s digital economy ambitions.

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Green Finance Framework

To support the issuance, the company established a Green Finance Framework that received a “gold” impact assessment from Marc Solutions.

The framework aligns with the Securities Commission Malaysia’s Sustainable and Responsible Investment Sukuk Framework, the Asean Green Bond Standards and the International Capital Market Association’s Green Bond Principles.

Sime Darby Property group managing director and CEO Azmir Merican said the company is the first developer in the country to bridge sukuk financing with an institutional real estate private equity structure.

He said the financing platform enables the company to develop institutional-quality build-to-suit assets for global technology operators while expanding its recurring income base.

The NEV platform currently manages approximately RM4.8 billion in assets under management. The fund has already secured two seed assets within Elmina Business Park and the City of Elmina, representing about 85 per cent of its target fund size.

These include a hyperscale data centre that commenced its long-term lease in April this year, alongside the new logistics facility, both underpinned by long-term lease arrangements.

Dual-tranche financing structure

The sukuk programme features a dual-tranche financing structure comprising guaranteed and non-guaranteed issuances, allowing the company to tap a wider pool of domestic and international investors while maintaining funding flexibility.

Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB), will provide financial guarantees for selected issuances, while ADB also serves as joint sustainability structuring adviser alongside Maybank Investment Bank.

Maybank Investment Bank is acting as sole principal adviser, sole lead arranger and facility agent, while OCBC Al-Amin Bank is joint lead manager and security agent.

Maybank president and group CEO Khairussaleh Ramli said the green sukuk structure would accelerate the development of energy-efficient hyperscale data centres while supporting the country’s long-term digital economy growth.

Tan Ai Chin, managing director, senior banker and head of investment banking of OCBC Malaysia, noted that the transaction reinforces the bank’s position in green digital infrastructure financing and reflects the growing integration of sustainable finance into Malaysia’s capital markets.

ADB director general for South-east Asia Nianshan Zhang said the project combines energy-efficient data centres with green Islamic financing, helping expand digital infrastructure while supporting Malaysia’s digital transformation.

Meanwhile, CGIF CEO Noriko Nasu said the landmark transaction demonstrates how international credit enhancement and sustainable financing can mobilise private capital for environmentally responsible infrastructure projects across the region.