Property developers likely to capture data-centre wave

KUALA LUMPUR: RHB Research holds the view that developers with vast land banks in suitable locations will likely be able to capture the data-centre wave, especially those with land equipped with infrastructure and located not far from major cities.

The investment bank said some Malaysian property developers may gradually transform into real estate players in the coming years.

It said that, while the residential segment may be crowded, the industrial segment is fast rising, and developers with sizeable land banks in Johor and the Klang Valley, as well as solid balance sheets, are more likely to seize opportunities.

“The industrial-property segment has grown rapidly and the current boom in data centre investments is now an even bigger catalyst due to the rise in US-China trade tensions, and the post-Covid-19 reopening of economies.

“Developers with properly designed industrial parks in their portfolios will more likely enjoy better earnings growth ahead,” RHB Research said in a note yesterday.

The research house noted that UEM Sunrise BhdSime Darby Property Bhd, S P Setia Bhd, Mah Sing Group BhdEco World Development Group Bhd and AME Elite Consortium Bhd are developers that may benefit from the demand for data centres, given the location, amenities and infrastructure of their existing land banks.

RHB Research has maintained an “overweight” rating on the property sector. — Bernama

05 Jun 2024