Friday 29 Mar 2024
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KUALA LUMPUR (July 26): Property developer Sunsuria Bhd has entered into a joint venture (JV) agreement with Genlin Development Sdn Bhd  to develop two pieces of land totalling 2.23 acres in Sentul.

In a stock exchange filing today, the group said its subsidiary Sunsuria Gateway Sdn Bhd has signed a shareholders agreement with Genlin to “mutually cooperate” to develop the land.

Sunsuria will hold a 70% equity stake in the JV company while Genlin will hold the remaining 30%.

The group said it has also inked a sale and purchase agreement with Genlin to acquire the land from the JV company for RM28 million, making it a related party transaction.

“The land is intended to be developed into a mixed development comprising service apartments and retail units for which the final development plan will only be finalized at a later stage,” the group said.

The development, it added, will increase Sunsuria’s land banks and enable it to sustain its core business as a property developer as well as enhance its future earnings.

“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,” said the group’s chairman, Datuk Ter Leong Yap.

“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,” added Ter.

Sunsuria’s share price closed one sen lower at RM1.46 today for a market capitalisation of RM1.17 billion.

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