Cheah announcing the firm's upcoming projects for the year 2015.
BANDAR SUNWAY: Malaysia's master community and top developer, Sunway Property, announced that the corporation will keep to their total sales target of RM1.7bil this year.
In the past six months, the developer has further strengthened its position as a master community developer with the launch of Malaysia’s first elevated Bus Rapid Transit (BRT) - Sunway Line, which connects the 500,000 commuters in the Sunway and Subang Jaya areas to the rest of Klang Valley; the opening of Sunway University’s new 12-storey academic block; joint venture with Daiwa House from Japan to build 100 units of high quality pre-fabricated landed homes in Sunway Iskandar; and the soft launch of the 600,000 sq ft Sunway Putra Mall in KL City Centre.
The joint venture with the Malaysian subsidiary of Japan’s largest homebuilder, Daiwa House Industry, is to build 100 green homes with an estimated GDV of RM210mil in Sunway Iskandar. The developer has also acquired a new 17-acre land bank in Kelana Jaya to develop an exclusive residential enclaves with a lake and golf course views. While there had been no new launches from the property development division, the developer had secured sales valued at RM500mil for the first half of the year on its ongoing projects, despite the weaker market sentiment.
In the pipeline
In the next six months, the developer will continue to track sentiment and plan accordingly to launch a total of six projects. In Klang Valley, the new launches include Sunway Gandaria in Bangi, Casa Kiara 3 in Mont Kiara, new retail and office units within Sunway Velocity in KL South, and Sunway Geo Residence 3 in Sunway South Quay, Bandar Sunway.
In Penang, the developer will launch 48 units of landed homes in Sunway Cassia, Batu Maung with an approximate gross development value (GDV) of RM90mil.
In Sunway Iskandar, Sunway Property will launch its first 196 units of landed homes called Sunway Emerald Residence, at the Lakeview Precinct, which is next to the Sunway International School (SIS) Sunway Iskandar.
“Amidst the softer sentiment, we are pleased to see that there is still demand for our properties. We believe that the positive response that we have received is due to our 'Build, Own & Operate' business model, displaying our commitment as a holistic Master Community Developer. We will continue to monitor the market in the next six months while we target our new launches to start from RM500,000 in price,” says Sunway Berhad managing director of property division (Malaysia and Singapore) Sarena Cheah.
Sunway Gandaria is a leasehold 2.06-acre project in Bangi, Selangor, which consists of 259 service apartments and 34 retail units. This projects targets to gross an approximate of RM226mil GDV.
Expected to gross RM336mil GDV, Casa Kiara 3 condominium in Mont Kiara will be developed on a 2.88-acre freehold land and will comprise 288 units. The development will feature dual-key units, which has previously attain success for Sunway Property in Sunway Geo development.
The developer will be launching another 24 units of retail shops and another 40 units of office suites in Sunway Velocity, a RM4bil freehold integrated development, located merely 3.8km from the KL City Centre. Being Sunway’s prominent development, this project consists of a shopping mall, residences, offices, retail shops, hotel, medical centre, and a two-acre Central Park. The retail, hospitality and healthcare components comprising 40% of the integrated city, will be built, owned and operated by Sunway. The development will be served by upcoming MRT and LRT stations.
The developer will also launch Sunway Geo Residences 3, at Sunway South Quay, which will be the final launch in the development. Sunway Geo Residences 3 comprises 420 units of condominiums and 44 units of townhouses. Sunway Geo is a 23.4-acre integrated development with an estimated RM2bil GDV. The development is located within the growing education and healthcare precincts of Sunway Resort City and is served by the newly launched Bus Rapid Transit (BRT) - Sunway Line. Previous launches in this development consist of retail shops, flexi suites, serviced apartments and residences, that have an average of 90% take-up rate.
"The developer’s mid-term strategy is to strengthen its 'Build, Own & Operate' model, to ensure that it will continue to enjoy sustainable development profit as well as recurrent income from its investment assets. This fully integrated model diversifies our earnings base especially through our market cycles,' adds Cheah.
In the first half of the year, the property development division has acquired a new 17-acre land bank in Kelana Jaya that surrounds a 15-acre lake, just 10 minutes away from Bandar Sunway and has easy access via Damansara - Puchong Expressway (LDP), Federal Highway and New Klang Valley Expressway (NKVE). The land is slated to be an exclusive residential development with an estimated GDV of RM1.8bil.
Sunway Property is also planning its first integrated development in Paya Terubong, Penang, on a 24-acre freehold land. The estimated GDV for the development is RM1.5bil, which consists commercial, SOHO high-rise residential and a 1.4mil sq ft shopping mall.
The group’s unbilled property sales of RM2.5bil combined with its remaining land bank of 3,343-acres as of July 2015 and a total GDV of RM50.4bil will keep the property division busy for the next 15 years. The total value of Assets Under Management of the division as of 31 December 2014 was more than RM7bil with a total net lettable area exceeding 8.3mil sq ft, is expected to generate healthy recurrent income for the group.
