AS A LEADING plantation giant, Sime Darby Guthrie has long been a key player in Malaysia’s palm oil industry, backed by an extensive landbank and integrated operations.
MBSB Research (MBSB) remain positive on Sime Darby Guthrie (SDG)’s 2nd MOU this year, with Menteri Besar Selangor Incorporation (MBI) to jointly develop a 2,500-acre strategic mixed-use industrial project within Sepang Estate, Selangor, adjacent to KLIA Aeropolis.
The collaboration allows Sime Darby Guthrie to tap into the value of its extensive land holdings while benefiting from the state-linked support of Menteri Besar Selangor Incorporated, which could help attract key development partners.
According to MBSB Bank Berhad Research, the proposed land conversion is largely aligned with the objectives outlined under the Rancangan Selangor 1 development blueprint.
The research house believes SD Guthrie is in a strong position to monetise its strategic land assets through the broader Integrated Development Region in South Selangor.
After its earlier move involving Carey Island and the proposed third port, the newly signed Sepang Estate memorandum of understanding further broadens the RS-1 strategy by targeting aerospace and industrial growth corridors surrounding Kuala Lumpur International Airport.
The 2,500-acre mixed-use project has an estimated gross development value of RM20 bil and is expected to be developed progressively over the next two decades.
Beyond industrial elements, the project is designed to support KLIA’s next growth phase by incorporating sectors such as aerospace, logistics, as well as commercial and residential components.
Its location also offers strategic advantages, with proximity to established townships including Sunsuria City and Serenia City, existing infrastructure networks, and seamless connectivity via the ELITE Expressway and North–South Expressway, enhancing its appeal as an industrial and logistics hub.
MBSB expects a similar land monetisation structure to be adopted, broadly mirroring the EcoWorld – NS Corp alliance, with the sale and purchase agreement likely to be concluded in the second half of 2026 and the first half of 2027.
Upon completion of the SPA, SD Guthrie is expected to retain a 50% equity interest via SD Guthrie Land Ventures Sdn Bhd.
This would be consistent with the group’s earlier land JV precedents, namely EBP7 in Negeri Sembilan and EBP8 in Johor.
“Following this MOU, we anticipate SD Guthrie’s Selangor landbank may ease to 29,940 ha from 33,615 ha, after factoring in the earlier MOU and JV involving Carey Island acreage,” said MBSB.
Importantly, the effect on its total Malaysia upstream landbank of 336,575 ha remains minimal, as the conversion area accounts only about 1.1% based on their estimates. —Apr 29, 2026
Main image: seehua.com
