Baker McKenzie Wong & Leow and Wong & Partners (the Singapore and Malaysia member firms of Baker McKenzie International respectively) have advised Sime Darby Property Berhad ("SDP") on its successful first close of a USD250 million inaugural Shariah-compliant industrial development fund ("Fund"). The Fund was established and will be jointly managed by a joint venture between SDP and LOGOS Property, and has secured 70% in capital commitments anchored by Permodalan Nasional Berhad and unit trust funds under its management and Kumpulan Wang Persaraan (Diperbadankan). The Fund will enable the development of sustainable, large-scale, integrated modern logistics real estate assets in Malaysia with green building certification over the next three years.
As Singapore, Malaysia and international counsel to SDP, the Firm advised on the structuring of the joint venture and the Fund formation. Principal Derek Kwan from the Financial Services team, who is based in Singapore, led the deal team which included local principal Jens Carle, associates Jonathan Phay, Gabriel Fang and Eugenia Seow, with principal Eunice Tan who provided additional support on regulatory advice. Partners Andre Gan and Stephanie Phua led on the JV with LOGOS, and together with partner Esther Chik and associate Mark Wong supported on the Malaysia law aspects.
Sime Darby Property's Group Managing Director, Dato' Azmir Merican said: "It has been a seamless and fruitful experience working with the team at Baker McKenzie Wong & Leow and Wong & Partners. We had earlier appointed them to advise on the JV with LOGOS and continued to work with the wider team on the complex and highly-sophisticated co-investment structure of the Fund, which enabled a wider base of investors to participate. The significance of this successful first closing also marked our organisation's maiden foray into fund management, and we are pleased that the Firm provided us with innovative solutions that may become the model of our future fund platforms."
At its maiden site, the 177-acre E-Metro Logistics Park, the Fund is set to deliver logistics assets spanning 8 million square feet in gross lettable area. Located in SDP’s township of Bandar Bukit Raja, Klang, in the state of Selangor in Malaysia, the E-Metro Logistics Park will feature a combination of ready-built or built-to-specification facilities.
"We are very pleased to have worked alongside the client on the JV and the Fund formation, which offers investors an opportunity to invest into an area earmarked to become Malaysia's state-of-the-art supply chain hub. This deal is a testament to our bench strength and also reinforces our reputation and ability to deliver cross border services as one firm," said Derek.