Sime Darby Property Taps Islamic Debt for Digital Infrastructure Push

Financing Structure Targets Institutional Assets

Sime Darby Property Bhd has structured a RM2.6 billion sukuk programme under its New Economy Venture platform to finance hyperscale data facilities and industrial properties across its Selangor developments. The programme, launched through subsidiary Sime Darby Property NEV, represents a departure from the group's traditional residential focus toward institutional-grade infrastructure designed to generate predictable cash flows.

The Islamic financing vehicle will support construction of hyperscale data centres at Elmina Business Park, with completion scheduled for 2027. Sime Darby Property announced that one facility has secured a 20-year lease arrangement with a global technology operator, providing multi-decade revenue visibility. The programme will also fund an automated distribution warehouse in the City of Elmina, equipped with robotic storage and retrieval systems, under a 15-year lease with a domestic hypermarket chain.

Azmir Merican, group managing director and CEO of Sime Darby Property, noted the company is pioneering the combination of sukuk financing with institutional real estate private equity structures in Malaysia's property sector. The approach allows the developer to construct build-to-suit assets for international technology tenants while building a recurring income portfolio.

Green Certification and Credit Enhancement

The sukuk carries a green designation supported by a framework that received a gold impact rating from Marc Solutions. Sime Darby Property said the framework aligns with Securities Commission Malaysia's sustainable investment guidelines, ASEAN Green Bond Standards, and International Capital Market Association principles.

Credit Guarantee and Investment Facility, an Asian Development Bank trust fund, will provide guarantees for selected tranches, broadening the investor base. The dual-tranche structure combines guaranteed and non-guaranteed issuances, offering flexibility in tapping domestic and international capital pools.

Maybank Investment Bank serves as sole principal adviser and lead arranger, with OCBC Al-Amin Bank acting as joint lead manager. ADB and Maybank Investment Bank are joint sustainability structuring advisers.

NEV Platform Nears Target Fund Size

Sime Darby Property's New Economy Venture platform currently holds approximately RM4.8 billion in assets under management. The fund has secured two seed assets within the Elmina developments, representing roughly 85 percent of its target size. One hyperscale data centre began its long-term lease in April, alongside the planned logistics facility.

Khairussaleh Ramli, president and group CEO of Maybank, said the green sukuk structure would accelerate energy-efficient hyperscale facility development while supporting Malaysia's digital economy expansion. Tan Ai Chin, managing director and head of investment banking at OCBC Malaysia, described the transaction as evidence of sustainable finance integration into Malaysia's capital markets.

Regional Context

Malaysia has emerged as a regional hub for data centre investment, driven by competitive power costs, connectivity infrastructure, and government incentives. The Southeast Asian nation competes with Singapore, Jakarta, and Bangkok for hyperscale deployments as cloud providers and technology companies expand regional capacity.

The sukuk programme positions Sime Darby Property to capture demand from technology operators seeking purpose-built facilities with long-term lease commitments. The developer's shift toward income-generating infrastructure mirrors broader regional trends as property groups diversify beyond residential and commercial projects into digital and logistics assets.

Nianshan Zhang, ADB director general for Southeast Asia, said the project combines energy-efficient data infrastructure with Islamic financing, supporting Malaysia's digital transformation objectives. Noriko Nasu, CEO of CGIF, described the transaction as a model for mobilizing private capital toward environmentally responsible infrastructure across Asia.

The programme marks Sime Darby Property's most significant move into institutional real estate, leveraging Malaysia's Islamic finance ecosystem to fund assets aligned with global technology supply chains. Completion of the initial facilities will provide a test case for the developer's recurring-income strategy and the viability of green sukuk structures for digital infrastructure financing in Southeast Asia.