Sime Darby Property Launches US$640 Million Green Sukuk to Fund Data Centers and Logistics Assets

Malaysia’s Sime Darby Property Bhd has launched a landmark RM2.6 billion (US$640 million) green sukuk programme to finance the development of hyperscale data centers and industrial logistics assets, marking a significant pivot by the property developer into the fast-growing digital infrastructure sector. The initiative, executed through the group’s New Economy Venture (NEV) platform, underscores the rising demand for Islamic financing tied to sustainable digital infrastructure in Southeast Asia.

The sukuk programme, described by the company as the first of its kind in the world dedicated to data center infrastructure, will support the construction of build-to-suit-to-lease hyperscale data centers as well as industrial and logistics facilities. These assets will be backed by long-term tenancy agreements with multinational technology companies and major domestic retailers. Proceeds will partly finance hyperscale data centers at Elmina Business Park, Sime Darby Property’s flagship industrial township in Selangor, with completion expected by 2027 under a 20-year lease with a global technology firm. The sukuk will also fund a build-to-suit automated distribution warehouse in the City of Elmina, equipped with advanced storage and retrieval systems and secured by a 15-year lease with a local hypermarket operator, targeted for completion by end-2027.

The group managing director and CEO Azmir Merican said the company is the first developer in Malaysia to bridge sukuk financing with an institutional real estate private equity structure, enabling it to develop institutional-quality assets for global technology operators while expanding its recurring income base. The NEV platform currently manages approximately RM4.8 billion in assets under management, with two seed assets already secured—including a hyperscale data center that commenced its long-term lease in April 2026—representing about 85 per cent of its target fund size.

To support the issuance, Sime Darby Property established a Green Finance Framework that received a “gold” impact assessment from Marc Solutions, aligning with Malaysia’s Securities Commission Sustainable and Responsible Investment Sukuk Framework, ASEAN Green Bond Standards, and ICMA Green Bond Principles. The sukuk features a dual-tranche financing structure—comprising guaranteed and non-guaranteed issuances—allowing the company to tap a wider pool of domestic and international investors. Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB), will provide financial guarantees for selected issuances, while ADB also serves as joint sustainability structuring adviser alongside Maybank Investment Bank. Maybank Investment Bank is acting as sole principal adviser, sole lead arranger and facility agent, and OCBC Al-Amin Bank as joint lead manager and security agent.

Maybank president and group CEO Khairussaleh Ramli noted that the green sukuk structure would accelerate the development of energy-efficient hyperscale data centers while supporting Malaysia’s long-term digital economy growth. Tan Ai Chin, managing director of OCBC Malaysia, said the transaction reinforces the bank’s position in green digital infrastructure financing and reflects the growing integration of sustainable finance into Malaysia’s capital markets. ADB director general for Southeast Asia Nianshan Zhang commented that the project combines energy-efficient data centers with green Islamic financing, helping expand digital infrastructure while supporting the country’s digital transformation. CGIF CEO Noriko Nasu said the landmark transaction demonstrates how international credit enhancement and sustainable financing can mobilize private capital for environmentally responsible infrastructure projects across the region.

The push into data center and logistics assets reflects Sime Darby Property’s broader strategy to build recurring income from institutional-grade assets, moving beyond its traditional property development business. As Malaysia cements its position as one of Asia’s fastest-growing data center markets, the sukuk programme is expected to provide a template for combining Islamic finance, sustainability, and digital infrastructure investment in the region.