SD Guthrie Unlocks Plantation Land Value Through RM798.3m Disposal

SD Guthrie will sell plantation land for RM798.3 million and jointly develop an industrial park, unlocking land value while preserving long-term earnings through its equity participation.

SD Guthrie Unlocks Land Value

SD Guthrie has unveiled a strategic move to unlock the value of its plantation assets by disposing of 1,021.93 acres of freehold agricultural land in Bukit Kerayong, Kuala Selangor for RM798.3 million.

At the same time, the company will invest up to RM100 million in a newly established 50:50 joint venture with Sime Darby Property to develop a large-scale industrial park on the site.

The transaction enables SD Guthrie to monetise low-yield plantation land at a fair valuation of RM17.93 per square foot while retaining long-term earnings potential through its equity stake in the development. Analysts view the land price as reasonable, citing its agricultural status, strategic location and strong industrial conversion potential.

The proposed development is expected to enhance the value of the land over time while providing recurring income opportunities. Pending completion of the disposal, analysts have maintained an Outperform rating with an unchanged target price of RM7.23.

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