12 hours ago
- Business
- Free Malaysia Today
UEM Sunrise's data centre MoU with S'pore firm collapses
UEM Sunrise and Logos Infrastructure Holdco signed an MoU in May 2024 to develop a data centre in Gerbang Nusajaya, Johor. (Freepik pic)
PETALING JAYA : UEM Sunrise Bhd's deal to build a data centre campus in Gerbang Nusajaya, Johor, with Singapore firm Logos Infrastructure Holdco Pte Ltd has been scrapped.
The property developer confirmed that the plan to develop an up to 360 megawatt data centre has fallen through following changes in Logos's ownership and business direction.
Its officer in charge and chief financial officer Hafizuddin Sulaiman revealed this in an email response to The Edge.
'The partnership with Logos has lapsed following a change in Logos's ownership, which led to a shift in its overall business focus and strategic direction,' he said.
ESR Group Ltd, which acquired 86.4% of privately-held Logos previously, had bought out the remaining 13.6% stake from the company's founders in July 2024.
Logos does not appear to have much of a track record in the data centre industry given it was only incorporated in February 2021.
UEM Sunrise, at the time of writing, has yet to make a filing on the matter with Bursa Malaysia.
News of the data centre collaboration with Logos being in jeopardy surfaced last month in several research house reports.
UEM Sunrise and Logos had inked a memorandum of understanding in May 2024 to jointly develop the site into a data centre campus.
The collaboration included end-to-end construction management, technical work, and assisting in government-related processes, such as licensing applications and securing state approvals.
Hafizuddin said UEM Sunrise is now in talks to sell a 74-acre land as part of its strategy to 'monetise non-core assets'.
'We have received early expressions of interest and are in preliminary discussions with several potential buyers. At this stage, no binding agreements have been formalised,' he said in the email.
As at end-December 2024, the company's remaining landbank stood at 5,198 acres, carrying an estimated gross development value (GDV) of RM90.9 billion.
UEM Sunrise posted a 151% jump in net profit for its first quarter ended March 31, 2025 to RM20.49 million from RM8.18 million a year earlier on higher revenue and lower finance costs. Revenue surged 85.65% to RM417.63 million from RM224.96 million previously.
According to its 2024 annual report, its largest shareholder with a 69.6% stake is UEM Group Bhd, which is in turn wholly owned by Khazanah Nasional Bhd, the national sovereign wealth fund.
UEM Sunrise was up one sen or 1.4% at 70 sen at 3.05pm, valuing the group at RM3.54 billion. The counter has tumbled 33.5% so far this year.
