Friday, 4 August 2017

(NST) Sunway acquires lands for RM231m

KUALA LUMPUR: Sunway Bhd is acquiring two landbanks, 14.8 acres of freehold land in USJ 1 and 5.28 acres of freehold land in Kajang for RM168.0 million and RM63 million respectively.

In a statement, the company said the acquisitions follow its earlier purchase of a parcel of freehold land measuring 4.53 acres in Jalan Belfield, Kuala Lumpur less than a month ago and the acquisition of 8.45 acres in Jalan Peel in February.

Cumulatively, in the last six months, the developer has acquired four plots of strategic land with a total gross development value (GDV) of RM 5 billion.

It said all the landbank will be suitable for transit-oriented developments as they are in close proximity to mass rapid transit, light rail transit, bus rapid transit and monorail stations.

Sunway Malaysia and Singapore property division managing director Sarena Cheah said Sunway’s healthy balance sheet will continue to allow the company to actively replenishing its landbank.

“In Klang Valley we are actively looking for transit-oriented developments where we can leverage our prior experience of building integrated and mixed-use developments near public transportation networks,” she said.

Sunway said it will be using the land in USJ for warehousing and storage facilities for its trading manufacturing businesses upon acquisition, but will look to subsequently redevelop the land into a proposed mixed-development with a GDV of approximately RM1.4 billion in the next five years.

The newly acquired land in Kajang comes with semi completed structures which is part of a previously approved development whose construction had been discontinued.

Sunway said it intends to continue building on the semi-completed structure but will replace the development with a mixed-development comprising a retail podium/commercial lots and serviced apartments/SOHO with an estimated GDV of RM460 million in the next five years.

The Kajang land is located less than two kilometres from Kajang town and is immediately

Sunway said the acquisitions are expected to provide further earnings visibility for the conglomerate.

Sunway’s total land bank now stands at 3,325 acres with a total GDV of RM 53.5 billion.

Besides its sizeable land bank for development, Sunway also owns and manages over 30 million sq ft of commercial properties.