KUALA LUMPUR: Sime Darby Property Bhd 's joint venture to create a fund platform will support the property developer's efforts to transform into a real estate player, said Maybank Investment Bank Research.

       The JV will enhance its investment and asset management business, which manages over five million sq ft of total net lettable area and broaden the group's income stream beyond property development.

       "More importantly, it provides an additional recurring income source to Sime Darby Property Group," it said in a note.

       Further, the research house said the tie-up with LOGOS Property Group will allow the group to tap into the latter's experience and network in the segment as well as reduce its upfront capital commitment.

       Sime Darby Property said in a filing with Bursa Malaysia yesterday it had entered into a shareholders' agreement with LOGOS to set up a 51:49 joint venture company named industrial joint venture Pte Ltd in Singapore.

       The first seed of the JV is intended to be structured as a Singapore limited partnership that is targeting total capital commitments of US$200mil (RM850mil) from accredited and institutional investors.

       "The fund will be focusing on developing and investing in build-to-suit to lease or sell industrial assets, primarily in the logistics sector," said Maybank IB.

       It added that the group plans to "REIT" these assets in the future once they stabilise or mature.

       Sime Darby Property has allocated a 177-acre site at its Bukit Raja project to to the JV, which would result in decent land sale gains to be recognised progressively over the next three years.

       Maybank IB has a "hold" call on Sime Darby Property and maintained its earnings forecasts pending further information on the joint venture.