Malaysia Morning Wrap | SIMEPROP Has Signed a Lease for Data Center Facilities Valued at up to RM5.6 Billion

The first trading day of December saw the S&P 500 and Nasdaq hit new highs again. At 4:03 p.m. ET, the $S&P 500 Index (.SPX.US)$ was up 0.24% to 6,047 and the $Nasdaq Composite Index (.IXIC.US)$ was up 0.97% to 19,403. The $Dow Jones Industrial Average (.DJI.US)$ was off 0.29% to 44,782.

$SIMEPROP (5288.MY)$ has signed a 20-year lease agreement worth up to RM5.6 billion with Pearl Computing Malaysia Sdn Bhd for data center facilities, set to begin as early as 2027. The facilities are being developed at the 77-acre Elmina Business Park, described as Klang Valley’s largest freehold industrial business hub. This deal aligns with Sime Darby Property’s strategy to increase recurring income and expand its investment and asset management (IAM) segment, which contributed RM95.83 million, or nearly 3% of its total revenue of RM3.27 billion, in the first nine months of 2024.

$YINSON (7293.MY)$ and its 49%-owned joint venture with PetroVietnam Technical Service Corp (PTSC) have secured a contract with a Murphy Oil Corp unit for a floating, storage, and offloading (FSO) vessel in Vietnam. The FSO, with a capacity of 500,000 barrels of oil equivalent, will be chartered for a firm period of 10 years, with options to extend for up to five more years. The contract is valued at up to US$416 million (RM1.8 billion). The joint venture has been operating FSO PTSC Bien Dong 01 since 2013 and the floating production storage and offloading vessel PTSC Lam Son since 2014. PTSC Lam Son's bare boat charter contract runs until the end of 2024, while PTSC Bien Dong 01 has a firm charter until mid-2028, with options to extend until 2033.

$SUNWAY (5211.MY)$ founder and executive chairman Tan Sri Jeffrey Cheah Fook Ling, along with his private vehicle Sungei Way Corp Sdn Bhd, sold a combined total of 100 million shares for RM485 million, or RM4.85 per share. Cheah's direct stake in Sunway decreased to 9.98% from 10.97%, while Sungei Way Corp's stake dropped to 44.08% from 45.41%. Earlier this year, Cheah and Sungei Way Corp also sold shares at different prices: 150 million shares in January at RM2.30 per share and 200 million shares in May at RM3.52 per share.

$CLMT (5180.MY)$ has agreed to acquire its first automated logistics property, the Elmina Logistics Hub, for RM180 million, with completion expected in the first half of 2025. The freehold property will be fully leased to Projek Tetap Teguh Sdn Bhd, a subsidiary of PTT Synergy Group Bhd, for 10 years. The lease, which includes built-in rent escalations, is expected to generate a gross annual rent of RM12.3 million, providing a first-year gross yield of about 6.8%. This acquisition will increase CLMT’s portfolio to 11 properties and raise the proportion of logistics and industrial assets to 6% from 3% of its total portfolio under management.

$T7GLOBAL (7228.MY)$ has been awarded a contract by Jadestone Energy (M) Pte Ltd for Pan-Malaysia maintenance, construction, modification (MCM), and hook-up and commissioning (HUC) services for Package B3. The contract, secured by T7's wholly-owned subsidiary Tanjung Offshore Services Sdn Bhd, began on October 17 and will run for five years until October 16, 2029. This is T7's third such contract, following two similar five-year awards: one from ExxonMobil Exploration and Production Malaysia Inc for Package B2 (Guntong) and another from IPC Malaysia BV for Package B3.

$PESONA (8311.MY)$ has secured a RM181.8 million contract to construct two 28-storey condominium blocks in Cyberjaya. The project, consisting of 606 units, is being developed by Lakefront Residence Sdn Bhd, a wholly-owned subsidiary of Avaland Bhd (KL:AVALAND). As of the end of September, Pesona Metro had an outstanding order book of RM2.3 billion, comprising nine ongoing projects.