KUALA LUMPUR, Sept 20 — Sunway Bhd’s unit, Sunway City Sdn Bhd is buying Sterling Paradise Sdn Bhd (SPSB) for RM15 million with the rights to 4.77 hectares of prime freehold land in Bukit Jalil.
In a statement today, Sunway said it had signed an agreement to acquire 100 per cent of the total issued and paid-up share capital of SPSB Paradise yesterday.
“SPSB has secured the lands on relatively favourable terms at a purchase consideration of 15 per cent of the gross development value (GDV) of the future development less a fixed sum of RM36.7 million.
“The variable nature of the purchase price coupled with only RM30 million of the purchase price to be paid upfront will allow Sunway greater agility in pricing its future development to meet the shifting demands of the market,” Sunway said.
It said the plots of land are strategically located for a potential residential-led mixed-use scheme, being just 600 meters away from the Muhibbah LRT station and easy access to multiple highways such as the LDP, Kesas, MEX and the toll-free Bukit Jalil highway.
In addition, the land comes with an approved development order, thus accelerating speed to market.
“The development is expected to be ready for launch by the second half of 2020 with the expected completion in 2026, contributing positively to Sunway’s earnings,” it added.
The landbank acquisition is Sunway Property’s fourth acquisition for the year with the first being 2.49 hectares of land in Tampines, Singapore for an executive condominium housing development with a planned GDV of RM2.4 billion (SG$800 million) and 3.84 hectares of leasehold land in Kota Damansara comprising serviced apartments and lifestyle retail units with an estimated GDV of RM 544 million.
The third acquisition was a 2.63-hectare land in Tianjin Eco-City, China with an estimated GDV of RM770 million (RMB1.3 billion) aligned with its strategy to make opportunistic acquisitions in-line with its master community developer proposition.
Currently, Sunway’s landbank total is 1,358 hectares amounting to RM58.7 billion in GDV with a total development period of 15 years. — Bernama
Source: The Malay Mail Online