Sunway buys KL land from Genting chief to develop RM1.05 bil project

KUALA LUMPUR (July 13): Sunway Bhd is acquiring 4.53 acres of freehold land in Bukit Bintang to undertake a mixed-use development featuring serviced apartments and lifestyle retail units with a gross development value of RM1.05 billion.

Sunway’s wholly-owned unit, Sunway City Sdn Bhd via Sunway Innopark Sdn Bhd signed a sales and purchase agreement with Genting Bhd’s chairman and chief executive Tan Sri Lim Kok Thay, his mother Puan Sri Lee Kim Hua and three beneficial owners today, to buy the land for RM165 million.

The three beneficial owners are Yarraville Sdn Bhd, Dandenong Sdn Bhd and Ripponlea Sdn Bhd.

According to Sunway, the purchase price — which works out to RM836.18 per sq ft — was arrived at based on a willing-buyer willing-seller basis, after taking into account the development potential and the internal rate of return.

“Given Sunway’s knowledge on the market value of the surrounding properties and the potential development value of similar land within the vicinity of the land, no valuation was carried out on the land,” it added in a filing with Bursa Malaysia.

Based on its feasibility studies, Sunway said the development will take five years and the project is expected to be launched by the second half of 2018.

“The land is located in a leafy enclave, right in the centre of Kuala Lumpur, with views of the old Istana Negara from one end of the proposed development and the upcoming tallest building in Kuala Lumpur, Warisan Merdeka, from the other,” Sunway said

“Sunway proposes to have a mainly residential development on the land to take advantage of its unique characteristics which should appeal to urban buyers who appreciate the tranquility of the immediate surroundings yet enjoying the conveniences of living in the city,” it added.

Sunway said in its latest annual report that as at end 2016,  it owned 3,292 acres of land, with potential development having a GDV of RM48.5 billion.

Listed since February 1984, shares in Sunway closed unchanged at RM3.93 today, for a market capitalisation of RM8.18 billion. — theedgemarkets.com

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