Sunway to turn office blocks above upcoming mall into REIT product

SUBANG JAYA (Nov 16): Sunway Bhd plans to turn the office blocks located above the upcoming Sunway Velocity Mall into a real estate investment trust (REIT) product.

“Because it is located on top of [the mall], we want to rent it out as a REIT-able product before putting it out in the retail market,” said the managing director of the group’s property development division Sarena Cheah.

“We will [make it a REIT-able development] at a time that is more conducive to us,” she told reporters at the Sunway Geo Residences roof topping-out ceremony here yesterday.

Cheah said the last component of the Sunway Geo Residences, Sunway Geo Residences 3, will take place next year after improvements to the area’s connectivity are completed. The project comprises a 44-storey condominium with 420 units. “We want to put it out into the market when people are in a better position to appreciate the connectivity [efforts] we are making,” Cheah said.

The Sunway Geo Residences development is part of the 23 acre (9.3ha) Sunway Geo integrated development which comprises residences, retail and offices with a combined gross development value of RM2.2 billion. It marks Sunway’s first venture with Japanese real estate specialist Mitsui Fudosan Co Ltd (Mitsui), which owns a 33% stake in the development.

This article first appeared in The Edge Financial Daily, on Nov 16, 2016. Subscribe to The Edge Financial Daily here.