Sunway signs master agreement for RM2.6b transit-oriented project in Johor, shares rise

• The transit-oriented project, adjacent to the Bukit Chargar station under the Johor Bahru–Singapore Rapid Transit System (RTS), involves the development of four residential and commercial towers, Sunway said in an exchange filing.

KUALA LUMPUR (Feb 13): Sunway Bhd (KL:SUNWAY) said on Thursday it has signed a master agreement for a mixed-use development worth more than RM2.6 billion in Johor.

The transit-oriented project, adjacent to the Bukit Chagar station under the Johor Bahru–Singapore Rapid Transit System (RTS), involves the development of four residential and commercial towers, Sunway said in an exchange filing. Sunway will also get the right to build a shopping mall, it said.

Shares of Sunway climbed to their highest in more than a month following the announcement. The counter rose as much as 16 sen or 3.5% to RM4.69. The stock was trading at RM4.63 at 3pm, valuing the company at RM29 billion.

Under the agreement with Mass Rapid Transit Corporation Sdn Bhd (MRT Corp), the state-owned RTS project owner will receive a payment of RM450.8 million as development rights value subject to adjustments.

“The Bukit Chagar integrated mixed-use development represents a fundamental shift as we integrate large-scale property rejuvenation alongside our rail infrastructure development,” MRT Corp chief executive officer Datuk Mohd Zarif Hashim said in a joint statement.

Construction is scheduled to commence in March 2025, and the first phase of the multi-storey park-and-ride facility — 850 car park bays and 1,015 motorcycle parking spaces — is expected to open to the public by Nov 30, 2026. The whole project is slated for completion in 2036.

The project is also expected to feature educational institutions, a ‘health and wellness’ hub, and a hospitality component that includes accommodations and meeting spaces.

“This development solidifies Sunway’s presence at the Causeway and the Second Link,” Sunway founder and chairman Tan Sri Jeffrey Cheah said. “It will also complement our Johor development portfolio.”

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