Sunsuria, Genlin to jointly develop KL site

PETALING JAYA: Sunsuria Bhd and Genlin Development Sdn Bhd are jointly acquiring and developing two pieces of freehold land measuring 2.23 acres in Sentul, Kuala Lumpur, for a mixed project comprising serviced apartments and retail units.
In a filing with Bursa Malaysia yesterday, Sunsuria said its 99.99%-owned subsidiary Sunsuria Gateway Sdn Bhd has entered into a joint venture (JV) with Genlin via a shareholders’ agreement (SHA) for the project.
Sunsuria executive chairman Datuk Ter Leong Yap said the land purchase reflects the group’s ambition to broaden its horizons as the company continues to seek out and pursue new development opportunities.
“We are enjoying tremendous success with our current projects in Sunsuria City and The Forum in Setia Alam, and they continue to be well received by our customers. We want to build on this success and take our best-in-class solutions to high-growth potential areas. This opportunity to expand our business to within the heart of Kuala Lumpur is just the first step and we expect new landbank opportunities in the near future,” he said in a statement yesterday.
Goodwill Signature Sdn Bhd, a wholly owned subsidiary of Sunsuria Gateway, has been identified as the JV vehicle to undertake the development of the land. Goodwill Signature will also acquire the land from Genlin for RM28 million cash.
Under the SHA, both Sunsuria Gateway and Genlin will respectively hold 70% and 30% shareholding equity in Goodwill Signature. Sunsuria Gateway expects to fully subscribe for the shares in Goodwill Signature in cash through internally generated funds.
Goodwill Signature will finance the land purchase via shareholders’ advances by the parties, based on the agreed proportions. Sunsuria Gateway’s share of the shareholders’ advances is RM19.6 million.
The subscription of shares in Goodwill Signature is expected to be completed by the fourth quarter of the financial year ending Sept 30, 2017 (FY17) while the proposed land acquisition is expected to be completed by the first quarter of FY18.
Astramina Advisory Sdn Bhd is the appointed financial advisor for Sunsuria Group in relation to the proposals.
Sunsuria’s shares fell 0.68% to close at RM1.46 yesterday with a total of 72,000 shares traded, giving it a market capitalisation of RM1.17 billion.