PETALING JAYA: Property developer Sunway Bhd has acquired plots of freehold land in USJ 1 and Kajang, Selangor, totalling 20 acres for a combined worth of RM231mil.
In two separate announcements, Sunway said it had acquired four parcels of land totalling 14.8 acres in USJ 1 from JAKS Resources Bhd for RM168mil, as well as 5.28 acres in Kajang for RM63mil from Concept Housing Development (M) Sdn Bhd.
The property developer said the acquisition in USJ 1 would provide Sunway with immediate access to four industrial lots that the trading and manufacturing businesses of the group intend to use in the immediate term as warehouses and storage facilities.
“Any surplus areas may be leased to external parties. In the medium term, Sunway plans to redevelop the plots of land which are strategically located for mixed-use development.”
Sunway said the land is within 500m of landmark buildings such as Da Men Mall, Summit USJ, Giant Hypermarket and Mydin Hypermarket.
“In the longer term, the land serves as valuable landbank for the property development division, as it is close enough to Sunway City to be an extension of the group’s township.
“It is estimated that the gross development value (GDV) for the future developments on the land would potentially be at least RM1.4bil.”
The land in USJ was purchased by Sunway’s wholly owned subsidiary, Sunway Supply Chain Enterprise Sdn Bhd, from JAKS’ wholly owned subsidiary Premier Place Property Sdn Bhd.
Commenting on the sale of the land in USJ 1 to Sunway, JAKS said in a separate statement that the transaction would allow it to redeploy the resulting capital into reducing its debt, support working capital needs and as capital reserves for future investment opportunities.
“Overall, we believe the transaction supports our efforts to strengthen the balance sheet and deliver better returns on our assets,” said JAKS.
Shares of Sunway closed seven sen higher at RM4.35, while JAKS was unchanged at RM1.49.
Separately, Sunway said the Kajang land would allow the company to diversify its presence and provide further visibility to the future earnings of the group.
“Due to its immediate proximity to the existing MRT Station, the proposed development will be another transit-oriented development (TOD) status for Sunway Group.
“Located directly beside the Sungai Jernih MRT station, the TOD project comprises retail podium/commercial lots and serviced apartment blocks. It will be one of the first of its kind in the Kajang vicinity and is targeted to be a new landmark for Kajang.”
The Kajang land was purchased by Daksina Harta Sdn Bhd, a subsidiary of Sunway. The developer said the acquisition of the land in USJ 1 and Kajang would be funded through bank borrowings and internally generated funds.
In a statement, Sunway said the acquisition of the USJ 1 and Kajang land follows its earlier purchase of a parcel of freehold land measuring 4.53 acres in Jalan Belfield, Kuala Lumpur, less than a month ago and the acquisition of 8.45 acres in Jalan Peel in February.
“Cumulatively, in the last six months, the developer has acquired four plots of strategic land with a total GDV of RM5bil. All the land bank will be suitable for TODs, as they are in close proximity to MRT, LRT, BRT and monorail stations.”
Sunway said its land bank now stands at 3,325 acres, with a total GDV of RM53.5bil.
