KUALA LUMPUR (Sept 20): Sunway Bhd is buying 47 parcels of prime freehold land totalling 11.8 acres in Mutiara Bukit Jalil here for RM15 million.
The land comes with an approved development order. The group plans to launch a project with a planned gross development value (GDV) of RM36.7 million on the land, by the second half of 2020 with completion slated for 2026.
Sunway said it seeks to introduce a lifestyle development that is catered to first-time homebuyers in this upcoming development. "This will contribute positively to the group's earnings," it added.
Sunway property managing director Sarena Cheah said the proposed freehold close-to-transit development will match the current demand, especially for upper-middle income millennials.
"We plan to deliver liveability within a secure and healthy community through this development, and are looking to price our properties affordably for this market," she said in a statement today.
Sunway's wholly-owned subsidiary Sunway City Sdn Bhd signed an agreement with Sterling Paradise Sdn Bhd yesterday, for the proposed land acquisition.
According to Sunway, Sterling Paradise had secured the land on relatively favourable terms at 15% of the GDV of the future development less a fixed sum of RM36.7 million.
"The variable nature of the purchase price, coupled with only RM30 million of the purchase price to be paid upfront, will allow Sunway greater agility in pricing its future development to meet the shifting demands of the market," said Sunway.
The landbank acquisition is Sunway Property's fourth this year, the first being a 6.16-acre land in Tampines, Singapore, for an executive condominium housing development with a planned GDV of RM2.4 billion.
This was followed by a 9.5-acre parcel of leasehold land in Kota Damansara with an estimated GDV of RM544 million and 6.5 acres of land in Tianjin Eco-City, China, with an estimated GDV of RM770 million.
Sunway's current landbank totals 3,356 acres, amounting to RM58.7 billion in GDV with a total development period of 15 years.
At 3.59pm, Sunway shares were up one sen or 0.61% at RM1.66, with 3.78 million shares traded, bringing a market capitalisation of RM8.19 billion.