Sime Darby Guthrie Sells Selangor Land for RM933m in JV Deal

KAPAR – SD Guthrie Berhad (SDG) has entered into a major strategic joint venture with YTL Power International Berhad and Bumi Assets Sdn Bhd to convert 1,623 acres of freehold land in Bukit Kerayong, Selangor, into an integrated industrial hub.

The transaction, executed through its subsidiary SD Guthrie Land Ventures Sdn Bhd, involves selling three contiguous oil palm land parcels to joint venture vehicle Bukit Kerayong Industrial Developments Sdn Bhd (BKID) for RM933.57 million. The agreed consideration represents a 5% premium over the land’s independent market valuation of RM889 million. Under the agreement, YTL Power and Bumi Assets will each hold a 35% stake in BKID, while SDG retains a 30% equity interest with an investment commitment of up to RM101.12 million.

Selangor Land

SDG plans to allocate RM744.4 million of the gross proceeds toward paying down existing bank borrowings, with the remaining funds used for real property gains tax and reinvestment. The debt reduction is expected to strengthen SDG’s balance sheet, lowering its forecasted FY27 net finance costs by 8.65% to RM169 million and trimming its gearing ratio to 15.6%.

The strategic move allows SDG to diversify beyond its core plantation earnings into light-to-medium industrial development while retaining potential future development profits through its 30% retained stake. Following the announcement, analysts maintained a ‘BUY’ recommendation on SDG, raising its target price to RM7.71 based on enhanced FY27 earnings prospects

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