Sunway forms JV with MKH to undertake RM540m mixed development in Kajang

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KUALA LUMPUR (Oct 26): Sunway Bhd has formed a joint venture with MKH Bhd to undertake an RM540 million transit-oriented freehold mixed development on a 5.28-acre piece of land in Kajang.

The development will comprise commercial lots and residential units, including affordable homes, and is expected to be launched in the fourth quarter of next year, with completion within four years, Sunway said in a statement today.

Located less than a kilometre from Kajang town, the development will be directly linked to the Sg Jernih MRT Station via a link bridge, said Sunway.

A joint venture vehicle called Daksina Harta Sdn Bhd was formed after Sunway’s unit SunwayMas Sdn Bhd signed a shareholders’ agreement with Perkasa Bernas (M) Sdn Bhd, a unit of MKH.

This was done via SunwayMas’ disposal of four shares in Daksina to Perkasa, at a total consideration of RM5 million.

The disposal price was arrived at after taking into consideration the net assets and earnings prospects of Daksina, it said.

With this, Sunway and MKH through their subsidiaries will then hold a 60% and 40% equity stake respectively in Daksina.

Sunway said the joint venture is not expected to have any immediate material effect on the earnings per share, net assets per share and gearing of Sunway for the financial year ending December 31, 2018.

Shares of Sunway closed down one sen or 0.72% at RM1.38 today for a market capitalisation of RM6.7 billion, while MKH eased one sen or 0.81% to RM1.22 for a market capitalisation of RM707.94 million.