Key Takeaways
- • Sime Darby Property launched the New Economy Venture, a RM1.25 billion ($307.7 million) real estate investment fund focused on build-to-suit-to-lease data centers and industrial logistics assets, achieving 100 percent capital commitment at first close.
- • The fund is backed by three major Malaysian institutional investors: Employees Provident Fund, Lembaga Tabung Angkatan Tentera, and Great Eastern Life Assurance (Malaysia), with Sime Darby Property committing $123.1 million as co-investor and general partner.
- • Two seed assets in City of Elmina (Sungai Buloh, Selangor) representing 85 percent of target fund size are under construction with expected completion in H2 2027, positioned as long-term lease arrangements.
- • Sime Darby Property's Investment and Asset Management business now manages $1.08 billion in assets under management, supported by a hyperscale Google data center lease that began operations in April 2026—part of a Google partnership dating to 2024.
- • The fund launch aligns with Sime Darby Property's SHIFT32 transformation strategy, diversifying recurring income through investment yield and fee-based income from high-demand new economy assets in Malaysia's expanding data center market.
Summary
Sime Darby Property, a Malaysian real estate developer, has established the New Economy Venture, a RM1.25 billion ($307.7 million) investment fund targeting build-to-suit-to-lease data centers and industrial logistics developments. The fund achieved full capital commitment at its first close, marking a significant strategic pivot for the developer into the institutional investment management space. Three prominent Malaysian institutional investors participated in the commitment: the Employees Provident Fund (Malaysia's largest pension fund), Lembaga Tabung Angkatan Tentera (armed forces pension fund), and Great Eastern Life Assurance. Sime Darby Property itself committed $123.1 million as co-investor while serving as general partner and fund manager.
The fund has already deployed capital into two seed assets located within City of Elmina, a township development in Sungai Buloh, Selangor. These initial acquisitions represent 85 percent of the target fund size and are structured as long-term lease arrangements. Construction on both assets is underway with completion targeted for the second half of 2027. According to Dato' Seri Azmir Merican, group managing director and CEO of Sime Darby Property, the fund launch represents a cornerstone achievement under the company's SHIFT32 transformation strategy, enabling diversification of recurring income streams through both investment yield and management fees derived from data center and warehouse developments.
Sime Darby Property's Investment and Asset Management division currently oversees $1.08 billion in assets under management, substantially supported by a hyperscale data center lease that commenced operations in April 2026. This facility is part of a broader relationship with Google dating to 2024, under which Sime Darby Property has leased land for the development and operation of two Google data centers. The timing of the New Economy Venture launch reflects Malaysia's emergence as Southeast Asia's fastest-growing data center hub, with the country attracting major cloud infrastructure investment from multinational providers. The fund structure positions Sime Darby Property to capitalize on sustained demand for purpose-built data center and logistics infrastructure while capturing management fees and long-term lease income from institutional-grade assets.
The fund has already deployed capital into two seed assets located within City of Elmina, a township development in Sungai Buloh, Selangor. These initial acquisitions represent 85 percent of the target fund size and are structured as long-term lease arrangements. Construction on both assets is underway with completion targeted for the second half of 2027. According to Dato' Seri Azmir Merican, group managing director and CEO of Sime Darby Property, the fund launch represents a cornerstone achievement under the company's SHIFT32 transformation strategy, enabling diversification of recurring income streams through both investment yield and management fees derived from data center and warehouse developments.
Sime Darby Property's Investment and Asset Management division currently oversees $1.08 billion in assets under management, substantially supported by a hyperscale data center lease that commenced operations in April 2026. This facility is part of a broader relationship with Google dating to 2024, under which Sime Darby Property has leased land for the development and operation of two Google data centers. The timing of the New Economy Venture launch reflects Malaysia's emergence as Southeast Asia's fastest-growing data center hub, with the country attracting major cloud infrastructure investment from multinational providers. The fund structure positions Sime Darby Property to capitalize on sustained demand for purpose-built data center and logistics infrastructure while capturing management fees and long-term lease income from institutional-grade assets.
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