KUALA LUMPUR (Oct 31): Sunway Bhd is buying three purpose-built student accommodations in the UK, collectively worth some RM202.8 million, via its recently established private trust, the Sunway Residence (Guernsey) Ltd (SRG).
The proposed acquisition will provide Sunway Group with geogrpahical and sectorial diversification, as well as a stable and sustainable income stream, according to the group's stock exchange filing today.
The three accommodations the group is buying are: The Colston for £9.12 million (RM49.2 million), Centregate Property for £9.53 million (RM51.3 million), and Redvers House for £18.98 million (RM102.3 million). Sunway said SRG has inked the agreements to effect the acquisitions from the vendors Colston Property Developments LLP, Marboot Centregate Ltd and Make Space Redvers Ltd, respectively.
Meanwhile, Sunway's two other private trusts, Sunway RE Capital Advisors (SG) Ltd (SG Fund Manager) and UK Fund Manager, have entered into a shareholder agreement (SHA) with Mansion Property Management Ltd (MPML) to regulate the rights of SG Fund Manager and MPML as shareholders of the UK Fund Manager (the joint venture), which is set up for the provision of fund management services.
SG Fund Manager has an 85% stake in UK Fund Manager, while MPML holds the remainder 15%.
Under the SHA, MPML shall be entitled to take up an additional 5% stake in the JV should SRG's assets under management reach an aggregate value of £350 million or more. MPML will also be appointed to manage and operate the new acquisitions (the three student accommodations SRG is buying) on behalf of SRG.
“The JV would enable Sunway Group to have a scalable platform to acquire additional yield accretive student accommodation in the UK and at the same time to grow its AUM,” Sunway said.
Sunway shares rose one sen or 0.59% to close at RM1.70, valuing it at RM8.38 billion. The counter saw some 6.33 million shares traded.