UEM Sunrise Bhd has officially shelved its plans to develop a data centre on a 74-acre plot in Gerbang Nusajaya, following the collapse of a partnership with Logos Infrastructure Holdco Pte Ltd. The company is now in early discussions to divest the land as part of its strategy to monetise non-core assets.
The development comes after the lapse of an agreement with Logos, which was originally intended to see the construction of a data centre with a capacity of up to 360 megawatts. Hafizuddin Sulaiman, officer in charge and chief financial officer of UEM Sunrise, confirmed via email that changes in Logos’ ownership and strategic direction had led to the termination of the collaboration. In July 2024, ESR Group Ltd, the majority shareholder of Logos, acquired the remaining 13.6% stake from the company’s founders, prompting a realignment of business priorities.
“The partnership with Logos has lapsed following a change in Logos’ ownership, which led to a shift in its overall business focus and strategic direction,” Hafizuddin stated. He did not specify when the May 2024 agreement had formally expired.
Speculation surrounding the deal’s cancellation first emerged in May 2025, after analysts reported that the agreement had been scrapped, with UEM Sunrise citing an “unfavourable operating environment”.
Hafizuddin added that the company has received preliminary expressions of interest for the land and is currently in discussions with several potential buyers. “At this stage, no binding agreements have been formalised. Any material developments will be disclosed in accordance with regulatory requirements,” he said.
In the financial year ended 31 December 2024, UEM Sunrise executed several portfolio rationalisation measures. These included the disposal of its remaining 40% interest in Aura Muhibah Sdn Bhd to KLK Land Sdn Bhd for RM386.2 million, as well as the sale of a land parcel in East Ledang to a global data centre operator for RM144.9 million.
The company launched six projects in 2024 with a total gross development value (GDV) of RM904.3 million, surpassing its initial RM800 million target, according to its annual report.
As at end-December 2024, UEM Sunrise’s remaining landbank amounted to 5,197.9 acres, carrying an estimated GDV of RM90.9 billion.
Shares of UEM Sunrise closed 1.46% higher on Tuesday, rising one sen to 69.5 sen, with approximately nine million shares traded. This brought the company’s market capitalisation to RM3.52 billion.
-The Edge
