SunCity in RM2b project opposite Sunway Velocity

PETALING JAYA: Sunway Bhd’s wholly-owned subsidiary Sunway City Sdn Bhd (SunCity) has entered into a joint venture (JV) agreement to develop 8.45 acres of leasehold land at Jalan Peel, Cheras, Kuala Lumpur.
It said in a statement last Friday that SunCity will pay RM500,001 for a 50% plus 1 share stake in Austral Meridian Property Sdn Bhd (AMP), the JV company. SunCity will also advance up to RM140 million to settle the existing liabilities of AMP.
The property developer has proposed to build a mixed development comprising serviced apartments, retail shops and offices on the land, which is located opposite Sunway Velocity.
The project’s estimated gross development value (GDV) is RM2 billion and will be developed over 10 years. The targeted launch of the project is in the first half of 2018.
It is expected to be synergistic with Sunway Velocity, a RM4 billion project by Sunway which has performed strongly since the first launch in 2008. Over RM1 billion worth of residences and offices have been sold so far.
SunCity will finance its share of equity participation and advances to AMP with internally generated funds and bank borrowings.
The acquisition brings Sunway’s total landbank to 3,301 acres with a GDV of RM50.5 billion, which will keep the group busy for up to 15 years.