Sunway proposes RM1.8 bil mixed development in Kelana Jaya

PETALING JAYA (May 12): Sunway Bhd is proposing a mixed development across 17 acres in Kelana Jaya, with an estimated gross development value (GDV) of RM1.8 billion, according to a report in The Edge Financial Daily today.

“A total of 17 acres of land will allow us the flexibility and space to develop a contemporary mixed development with an unobstructed view of the golf courses and a concept of serene living amidst lush greenery and a beautiful lake,” said Sunway managing director of property development division for Malaysia and Singapore, Sarena Cheah (pictured, below).

The proposed mixed development consists of serviced apartments and retail shops, with the first launch expected to happen end-2016. The project will be developed over five years.

The land is accessible via major highways such as Lebuhraya Damansara-Puchong, Federal Highway, New Klang Valley Expressway and Subang Airport Highway. It is close to the Setia Jaya KTM and Sunway-Setia Jaya Bus Rapid Transit-Sunway Line and sits in the vicinity of Kelab Golf Negara Subang.

“It will be a highly sought-after development, given its prime location and wide accessibility. It is also flanked by the mature and affluent neighbourhoods of Petaling Jaya, Sunway Resort City, Subang Jaya and Shah Alam,” added Cheah.

Sunway was reported to have said in a statement yesterday that Sunway Dimension Stones Sdn Bhd had signed two sale-and-purchase agreements with Kelana Resorts Sdn Bhd and its unit Viva Variasi Sdn Bhd to purchase the land parcels for a combined RM286 million or RM386.31 per sq ft.

Sunway Dimension Stones is a wholly-owned subsidiary of Sunway Holdings Sdn Bhd, which in turn is a wholly-owned unit of Sunway.

In a filing with Bursa Malaysia yesterday, Sunway said there was no valuation done on the land, but the purchase price was arrived at pursuant to an open tender.

To date, Sunway has unbilled property sales of RM2.5 billion. This, combined with its remaining landbank of 3,380 acres with a potential GDV of RM50 billion, will keep the group busy for the next 15 years.

Sunway said the group’s latest acquisitions would not have any immediate material effect on the earnings per share, net assets per share and gearing of Sunway for the financial year 2015. However, it is expected to contribute positively to future earnings of the group.