Sunway acquired new land at Sungai Way Free Trade Zone, PJ

Sunway has acquired ~16.996 acres (740,342 sq ft) of prime land in Kelana Jaya via an open tender at a favourable rate of ~RM386.31/sq ft for a total of RM286mil cash. It targets to launch a five-year RM1.8bil mixed development there by 2H2016. It is proposing to build 7 residential blocks with a commercial podium, with a total built-up of ~3mil sq ft and an ASP of RM800/sq ft. The land has a 4x plot ratio. Sunway expects to complete the acquisitions within six months.

Sunway acquired new land at Sungai Way Free Trade Zone, PJ

Strategically situated next to Western Digital in the Sungai Way Free Trade Zone in Petaling Jaya, the land is easily accessible from major highways and local roads, among others, through an underpass on Lebuhraya Damansara-Puchong, Federal Highway via Jalan Majlis and local roads to Subang Airport and New Klang Valley Expressway.

It is also 600 metres from the Setia Jaya KTM and Sunway Setia Jaya Bus Rapid Transit-Sunway Line stations, providing residents access to public transportation networks to Kuala Lumpur city centre, Sunway Resort City, Subang Jaya, Shah Alam and Klang.

The land is within the vicinity of the Kelab Golf Negara Subang which features two 18-hole golf courses and is adjacent to a 15-acre water retention pond.

The proposed development has a potential margin of 15%-20% margin. Notwithstanding the larger portion being leasehold (99 years), the acquisition price compares favourably to that paid by Gamuda Bhd about three years ago of RM95mil or ~RM450/sq ft for a 4.86-acre parcel of freehold land in the vicinity.

In a“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 focused on serene living amidst lush greenery and a beautiful lake,” said Sarena Cheah, Sunway Berhad’s Managing Director of Property Development Division for Malaysia and Singapore.

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

Sunway noted that its unbilled property sales of RM2.5 billion and remaining landbank of 3,380 acres with a potential GDV of RM50 billion will keep the property division busy within the next 15 years.