KUALA LUMPUR (May 25): Sunway Bhd has proposed to acquire 47 completed individual residential units of Residensi Infiniti 3 in Wangsa Maju, from Setapak Heights Development Sdn Bhd at RM45.79 million, which it intends to re-sell to end-customers at a profit.

Sunway said the purchase of the luxury residential units was formalised after its wholly-owned Sunglobal Resources Sdn Bhd inked a master sale and purchase agreement (SPA) with Setapak Heights Development today.

"The proposed acquisition represents an opportunistic acquisition by Sunglobal to acquire the parcels at a discount so that it can be resold to end purchasers at a profit," Sunway, a property and construction conglomerate controlled by tycoon Tan Sri Jeffrey Cheah and his family, said in a filing with Bursa Malaysia today.

"Sunglobal believes it can leverage on the strength of its sales and marketing team, database of customers and extensive relationship with various sales agencies to market the parcels," it added.

In addition, Sunway said Setapak Heights Development is offering favourable payment terms, in which Sunglobal will only pay 10% of the purchase consideration upfront, while the balance will be deferred equally to the 12th and 18th month from the date of the SPA.

"This gives Sunglobal the opportunity to sell the parcels to end purchasers without adversely affecting the cash flow and gearing of Sunway," it added.

On valuation of the residential units, Sunway said it was calculated based on a rate of RM430 per sq ft — which is at a discount from the selling price of between RM550 per sq ft and RM600 per sq ft — other similar size and quality properties within the Residensi Infiniti 3 vicinity.

"Based on the results of the [feasibility] study, the management of Sunway is of the view that the project financials meet the internal investment hurdle rate for Sunway to proceed with the proposed acquisition," it added.

To fund the purchase, Sunway said it will be tapping into its internally generated funds. As at end-March, Sunway's cash chest stood at RM4.51 billion.

"The audit committee of Sunway is of the view that the proposed acquisition is fair, reasonable and on normal commercial terms," it added.

Currently, Sunway said the 47 residential units comprised a built-up area of 2,266 sq ft, which are well furnished with marble flooring in the living room, timber strip flooring in the bedrooms, kitchen cabinets and wardrobes for all bedrooms.

Listed on the Main Market, Sunway shares closed unchanged at RM1.50 today, valuing it at a market capitalisation of RM7.38 billion. — theedgemarkets.com

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