Sunway Snaps up Landbanks with RM5 Bil GDV in Six Months
Sunway Berhad, Malaysia’s leading conglomerate today announced the acquisition of two landbanks, 14.8 acres of freehold land in USJ 1, and another 5.28 acres of freehold land in Kajang for RM168.0 million and RM63.0 million respectively.
These acquisitions follow Sunway Berhad’s 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 6 months, the developer has acquired four plots of strategic land with a total gross development value (GDV) of RM 5.0 billion. All the landbank will be suitable for transit-oriented developments as they are in close proximity to MRT, LRT, BRT and monorail stations.
“Our healthy balance sheet will continue to allow us to actively 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,” said Sarena Cheah, Managing Director, Property Division Malaysia and Singapore, Sunway Berhad.
The land acquired in USJ is purchased by Sunway Supply Chain Enterprise Sdn Bhd, a wholly-owned subsidiary of Sunway Berhad from Premier Place Property Sdn Bhd, a wholly-owned subsidiary of JAKS Resources Berhad. The Kajang land was purchased by Daksina Harta Sdn Bhd, a subsidiary of Sunway Berhad from Concept Housing Development (M) Sdn Bhd.
Sunway 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 5 years. Strategically located within close vicinity of Sunway City, the land is surrounded by a host of amenities including Sunway Pyramid Mall, Da Men Mall, USJ Summit, Giant Hypermarket and Mydin Hypermarket. The land is highly accessible via the South Quay BRT (600 meters) and USJ7 LRT station (less than 1 kilometer away), and major highways such as Kesas, NPE and NKVE.
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 intends to continue building on the semi-completed structure but will replace the development with a proposed mixed-development comprising a retail podium/commercial lots and serviced apartments/SOHO with an estimated GDV of RM460.0 million in the next five years.
The Kajang land is located less than two kilometres from Kajang town and is immediately adjacent to the newly-opened Sg Jernih MRT which makes the development another transit oriented development (TOD) for Sunway Group, anticipated to be the first of its kind in Kajang.
The acquisitions are expected to provide further earnings visibility for the conglomerate. Sunway Berhad’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 square feet of commercial properties
More information on the new developments will be announced by Sunway in due course.