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| Sited next to Western Digital in the Sungai Way Free Trade Zone, the land is within the vicinity of the beautiful Kelab Golf Negara Subang |
.PETALING JAYA: Conglomerate Sunway Bhd is boosting its land bank close to its
flagship development Sunway township by buying 17 acres worth RM286mil.
The parcel, which is situated next to Western Digital in the Sungei Way Free
Trade Zone, works out to about RM386 per square foot.
It is believed to have belonged to a politician who used to be active in the
1980s in Selangor and his partner.
With the acquisition, the company plans to roll out a mixed project that
entails service apartments and retail shops, with a total gross development
value of RM1.8bil.
Sunway said the purchase from a private company, Kelana Resort Sdn Bhd, was
in line with its target to buy land ready for immediate launch. It expects the
first launch of the project to be in the financial year ending Dec 31, 2016,
with a development period of five years.
Sunway said the residential units would be designed to capture the view of
the 18-hole golf course of Kelab Golf Negara Subang and a 15-acre water
retention pond.
It planned to improve the pond’s landscape by working with local
authorities.
“In addition, the land is located about 600m from the Setia Jaya KTM and Bus
Rapid Transit Sunway Line stations which provide residents access to public
transportation networks to Kuala Lumpur City Centre,
Subang Jaya, Sunway Resort
City, Shah Alam and Klang,” it said.
The Lebuhraya Damansara-Puchong is on the northern boundary of the land.
Much of the 17 acres is leasehold while 0.2 acre is freehold.
The land was purchased through an open tender. It took into consideration the
development potential of the land, which met its required internal rate of
return.
“Given Sunway’s knowledge of the market value of the surrounding properties
and the potential development value of similar land within the vicinity, i.e.
Kelana Jaya, no valuation was carried out on the land,” it added.
It will buy the land through bank borrowings and/or internally generated
funds and expected the acquisition to be completed by the second half of the
year.
Sunway’s net gearing stood at 0.3 times as at end-December 2014.
“Properties in Petaling Jaya are welcomed due to scarcity of land and
continuous population growth. Petaling Jaya, being one of the most developed
areas in terms of population and economy, has long been an area of focus by
Sunway.
“Sunway is confident that the project will receive positive response when it
is launched,” the company said.
It had conducted a feasibility study before bidding for the land while it
also studied surrounding projects to assess the viability of the project.
Other nearby integrated projects include WCT Holdings Bhd’s RM1.8bil Paradigm
commercial development and Mah Sing Group Bhd’s RM3.2bil Icon City.
Paradigm at Kelana Jaya consists of a shopping mall, corporate offices,
serviced residences and hotel suites.
Meanwhile, Icon City, located at SS8, Petaling Jaya, comprises serviced
apartments, retail shops, mall, offices and hotel on a 20 acres.
Sunway closed 1 sen lower to RM3.40 with a market cap of RM5.94bil.
For more information on
Building and Construction event, please visit www.asiapacificevents.com
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