Sime Darby inks framework agreement with Japan residential asset manager

KUALA LUMPUR: Sime Darby Bhd’s indirect subsidiaries, Sime Darby Property Singapore Ltd and Hastings Deering (Australia) Ltd (HDAL), have entered into a framework agreement with Japan Residential Asset Manager Ltd (JRAM) for industrial properties disposal in Australia.

Japan Residential Asset Manager is the manager of Saizen REIT.

Under the agreement, HDAL will sell certain of its industrial properties in Australia to Saizen REIT which would be master leased to HDAL, and Sime Darby Property will issue new units in Saizen REIT as part of a reverse takeover exercise of Saizen REIT by Sime Darby Property.

Sime Darby told Bursa Malaysia yesterday that Sime Darby Property had also entered into a conditional share agreement with Japan Regional Assets Manager Ltd for the proposed acquisition of 80 per cent of the issued shares in JRAM.

The completion of the properties disposal and the acquisition were inter-conditional, it added.

“The parties will commence negotiations and mutually agree on the terms of the definitive transaction agreements to be entered into between the parties pursuant to the properties disposal by Sept 30, 2016,” said Sime Darby.

The conglomerate added the proposals were in line with its corporate strategy to develop a REIT platform to generate a resilient and recurring income.

It said the proposal would enable Sime Darby to monetise the properties, on which HDAL will continue its operations under the Master Lease, while deleveraging its balance sheet.

“This will further allow Sime Darby to re-allocate capital and drive continuous improvements in financial and operational efficiency,” said Sime Darby. — Bernama