Thursday 28 Mar 2024
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This article first appeared in City & Country, The Edge Malaysia Weekly on July 8, 2019 - July 14, 2019

Sunway Bhd, through its subsidiary Sunway PKNS Sdn Bhd, entered into a privatisation agreement with Perbadanan Kemajuan Negeri Selangor (PKNS) on July 1 to accept the rights to develop a leasehold parcel measuring about 9.5 acres in Kota Damansara, Selangor.

On the parcel, Sunway PKNS — in which Sunway has a 60% stake and PKNS, 40% — plans to develop a mixed-use project, comprising serviced apartments and retail units, with a gross development value (GDV) of RM544 million, according to Sunway.

Sunway property division managing director Sarena Cheah signed the agreement on behalf of Sunway PKNS while PKNS CEO Datuk Mohd Azizi Mohd Zain signed for PKNS.

Due to be completed in 2025, the development will be close to retail amenities such as Sunway Giza Mall, Sunway Nexis and IKEA Damansara as well as educational institutions, including Sri KDU and SEGi University. Sunway plans to build a healthcare centre in the area in 2022.

The development is accessible via major highways such as the New Klang Valley Expressway (NKVE) and Damansara-Puchong Highway (LDP) and will be linked to the upcoming Damansara-Shah Alam Elevated Expressway (DASH). As for public transport, it is located about 3km from the Kota Damansara and Surian mass rapid transit stations.

In consideration of PKNS granting the development rights to the parcel to Sunway PKNS, the latter will pay PKNS a rights value of RM36.6 million as well as revenue share of RM50 million or a sum equivalent to 8.88% of the gross sales value of the development (less discounts and sales incentives), whichever is higher. In addition, PKNS is entitled to a portion of the profit before tax from the development since it is a shareholder of Sunway PKNS.

Including the parcel in Kota Damansara, Sunway has a total land bank of 3,294 acres in Malaysia, Singapore, China and India, with a combined GDV of RM56.6 billion.

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