KUALA LUMPUR (Oct 2): Sunsuria Bhd has entered into two agreements to develop high-rise residential and commercial projects in Kuala Lumpur with a total estimated gross development value (GDV) of RM3.53 billion.
In a statement today, the property firm said it has entered a conditional shares subscription and shareholders’ agreement with Bangsar Hill Park Development Sdn Bhd (BHP Development), Suez Capital Sdn Bhd and Dasar Temasek Sdn Bhd, to acquire a 51% stake in property developer BHP Development for RM8.44 million.
The agreement will see Sunsuria developing a parcel of residential development land measuring 9.82 acres along Lorong Maarof in Bangsar with an estimated GDV of RM3.01 billion. The entire development is estimated to be completed by 2028.
Meanwhile, Sunsuria also entered into another conditional shares subscription and shareholders’ agreement to acquire an investment holding company, Bumilex Construction Sdn Bhd, for RM2. Bumilex, via its 51% subsidiary Montflex Sdn Bhd, owns the development rights for two plots of land along Lorong Tuanku Abdul Rahman in Kuala Lumpur.
Under the agreement, Sunsuria plans to develop the land into a high-rise mixed commercial project which measures 1.16 acres in total, with an estimated GDV of RM524.8 million. Construction for the commercial development is set to commence in the second half of 2021 and is expected to be completed by the end of 2025.
"The acquisitions are expected to contribute positively to the earnings of Sunsuria over the long term through income contribution from the development projects, as well as opportunities for the group’s construction arm to tender for construction contracts to develop the two projects," said Sunsuria, adding that it believed the projects will contribute positively to the group’s earnings in the long run.