Sun­way buys Ka­jang, Subang Jaya plots for RM231m

Lat­est ac­qui­si­tions bring to­tal gross de­vel­op­ment value to RM53.5b

New Straits Times - - Business - AMIR HISYAM RASID KUALA LUMPUR bt@me­di­­ness

SUN­WAY Bhd has con­tin­ued with its ag­gres­sive land­bank­ing, with the ac­qui­si­tions of two plots in Se­lan­gor. The com­pany said yes­ter­day it had bought 5.99ha and 2.14ha free­hold sites in USJ 1, Subang Jaya, and Ka­jang for RM168 mil­lion and RM63 mil­lion, re­spec­tively.

This came af­ter it sold Sun­way Clio Prop­erty to Sun­way Real Es­tate In­vest­ment Trust (Sun­way REIT) for RM340 mil­lion ear­lier this week and pur­chases of land in Jalan Belfield and Jalan Peel, here.

The lat­est ac­qui­si­tions bring Sun­way’s to­tal land­bank to 1,346ha with a to­tal gross de­vel­op­ment value (GDV) of RM53.5 bil­lion.

Cu­mu­la­tively, in the last six months, the de­vel­oper has ac­quired four plots of strate­gic land with a com­bined GDV of RM5 bil­lion.

Ke­nanga In­vest­ment Bank said Sun­way ’s land­bank­ing ac­tiv­ity and as­set dis­pos­als could con­tinue this year and would help in­crease its GDV.

“The dis­posal of Sun­way Clio Prop­erty to Sun­way REIT would clear up its bal­ance sheet to make way for more land ac­qui­si­tions this year, de­spite hav­ing re­plen­ished its RM5 bil­lion GDV.

“We be­lieve there could be more land­bank­ing deals in the pipe­line and we do not rule out fur­ther as­set dis­pos­als,” it said in a re­search note.

Ke­nanga has reaf­firmed a “mar­ket per­form” as­sess­ment on Sun­way.

Sun­way Malaysia and Sin­ga­pore prop­erty di­vi­sion man­ag­ing di­rec­tor Sarena Cheah said Sun­way’s healthy bal­ance sheet would al­low the com­pany to con­tinue re­plen­ish­ing its land­bank.

“In Klang Val­ley, we are ac­tively look­ing for tran­sit-ori­ented de­vel­op­ments (TODs) where we can lever­age our prior ex­pe­ri­ence of build­ing in­te­grated and mixed-use de­vel­op­ments near pub­lic trans­porta­tion net­works,” she said.

The com­pany said the land would be suit­able for TODs as the sites were close to mass rapid tran­sit, light rail tran­sit, bus rapid tran­sit and mono­rail sta­tions.

On the USJ land, Sun­way said it would use it for ware­hous­ing and stor­age fa­cil­i­ties for its trad­ing man­u­fac­tur­ing busi­nesses, but would sub­se­quently look at re­de­vel­op­ing it into a mixed-de­vel­op­ment with a GDV of RM1.4 bil­lion in the next five years.

The Ka­jang land comes with semi-com­pleted struc­tures which is part of a dis­con­tin­ued de­vel­op­ment.

Sun­way plans to con­tinue build­ing on the semi-com­pleted struc­ture but will turn it into a mixed de­vel­op­ment com­pris­ing re­tail podium and com­mer­cial lots as well as ser­viced apart­ment/SoHo units with an es­ti­mated GDV of RM460 mil­lion in the next five years.

Be­sides size­able land­bank, Sun­way also owns and man­ages more than 30 mil­lion sq ft of com­mer­cial prop­er­ties.

Sun­way Bhd has ac­quired four plots of land with a com­bined GDV of RM5 bil­lion in the last six months.

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