Hong Leong Investment Bank Bhd (HLIB) maintained its BUY call on Sime Darby Property Bhd with an unchanged target price of RM2.10 after the developer entered a 50:50 joint venture with SD Guthrie Bhd to acquire 1,021.93 acres of land in Kuala Selangor for RM798.3 million.
HLIB said the acquisition could unlock a new industrial growth corridor, supported by the land’s strategic location and Sime Darby Property’s industrial development expertise.
The research house said the land within Bukit Kerayong Estate, Mukim Jeram, will be developed into a heavy industrial park anchored by logistics and renewable energy infrastructure. The acquisition price translates to RM17.93 per square foot, with the joint venture expected to inject up to RM100 million each for their respective participation.
It noted that the site is strategically positioned near Port Klang, about 32km away, and benefits from major infrastructure links, including the West Coast Expressway and the upcoming East Coast Rail Link (ECRL). The land is also located near the proposed Puncak Alam and Kapar ECRL stations, which could support future industrial demand.
The research house said the development remains in its early stages, with no guidance on gross development value yet, as master planning is still ongoing. The first launch is targeted within 18 months, likely in the first half of 2028.
HLIB added that the partnership combines SD Guthrie’s strategic landbank with Sime Darby Property’s track record in industrial developments such as Elmina Business Park and Bandar Bukit Raja. The research house maintained its forecasts and BUY recommendation, saying the company remains a multi-year growth story driven by industrial exposure, resilient residential demand in Greater Klang Valley and expanding recurring income streams.
As of 10.11 am, the stock price gained by nearly 3%, to RM1.40.
