UEM Sunrise’s land acquisition in Seri Kembangan gains positive views

KUCHING: UEM Sunrise Bhd’s (UEM Sunrise) land acquisition in Seri Kembangan has garnered positive views from analysts, given that this will increase the group’s presence in central region of Malaysia.

UEM Sunrise revealed in a press release that the group had, through its wholly-owned subsidiary Sunrise Alliance Sdn Bhd, inked a sale and purchase agreement with Kemaris Residences Sdn Bhd to acquire a 19.24-acre land for RM109.5 million in Taman Equine, Seri Kembangan, Selangor.

The research arm of MIDF Amanah Investment Bank Bhd (MIDF Research) was positive on the land acquisition as the land acquisition will increase UEM Sunrise’s presence in central region of Malaysia.

“Note that UEM Sunrise is gradually shifting its focus from southern region to central region of Malaysia.

“Currently, UEM Sunrise’s presence in central region is mainly in Bangi and Mont Kiara,” it said.

AccordingtoUEMSunrise,Taman Equine is located approximately 18 kilometres (km) to the south of Kuala Lumpur city centre, and is easily accessible via Maju Expressway, LebuhrayaDamansaraPuchongand South Klang Valley Expressway.

The group noted that the Equine Park MRT2 Station which is currently under construction is located 1.3km to the south of Equine Land.

MIDF Research thus viewed the acquisition price of RM131 per square foot (psf) fair as it is within the asking price of RM100psf to RM150psf for residential land in Equine Park.

“UEM Sunrise is planning to build 924 residential units on the land where Development Order has been approved,” it said.

“Estimated gross development value (GDV) for the project is at RM700 million, translating into average selling price per unit of RM758,000.”