Sunway buys KL land, plans RM1.1b project

PETALING JAYA: Sunway Bhd is acquiring a piece of freehold land measuring 18,332 sq m in the Kuala Lumpur city centre from Genting chairman and CEO Tan Sri Lim Kok Thay and a few other parties for RM165 million.

Sunway said the proposed development on the land will comprise mainly serviced apartments with some lifestyle retail units, with an estimated gross development value of RM1.1 billion, comprising RM1.05 billion of serviced apartments and RM50 million of retail units.

The entire project is expected to be developed within a five-year period.

Sunway told Bursa Malaysia its wholly owned subsidiary entered into a sale and purchase agreement yesterday with LGT Sdn Bhd, Kok Thay, Puan Sri Lim (Nee Lee) Kim Hua, Yarraville Sdn Bhd, Dandenong Sdn Bhd and Ripponlea Sdn Bhd for the acquisition.

Sunway noted that the proposed acquisition will add 4.53 acres of freehold prime land in Kuala Lumpur to Sunway’s landbank, providing further visibility to future earnings of the group.

The land, which is located within 500m from the Maharajalela monorail station, will be acquired with approvals obtained for a mixed-use development with a plot ratio of 8.81 times.

While amendments will be made to the approvals obtained to modify the product mix, Sunway believes this development will be ready for launch by the second half of 2018.

“The ability to launch this project quickly will improve the internal rate of return of the proposed development,” it said.

On Bursa Malaysia yesterday, Sunway closed unchanged at RM3.93 on 2.92 million shares traded, giving it a market capitalisation of RM8.18 billion.