Sunway City buys Sterling Paradise for RM15m
KUALA LUMPUR: Sunway Bhd’s unit, Sunway City Sdn Bhd is buying Sterling Paradise Sdn Bhd for RM15mil with the rights to 11.8 acres of prime freehold land in the mature neighbourhood of Mutiara Bukit Jalil.
It said on Friday it had signed an agreement to acquire 100% of Sterling Paradise which owns the 47 parcels of land with a potential residential-led mixed-use scheme.
Sunway pointed out Sterling Paradise had secured the lands on relatively favourable terms at a purchase consideration of 15% of the gross development value (GDV) of the future development less a fixed sum of RM36.70mil.
“The variable nature of the purchase price coupled with only RM30mil of the purchase price to be paid upfront will allow Sunway greater agility in pricing its future development to meet the shifting demands of the market.
“In addition, the lands come with an approved development order, thus accelerating speed to market. The development is expected to be ready for launch by the second half of 2020 with the expected completion in 2026, contributing positively to Sunway’s earnings,” it said.
Sunway Property managing director, Sarena Cheah said: “The proposed freehold, close-to-transit, development will match the current demand, especially for upper-middle income millennials who has flocked to Bukit Jalil in search for a greener environment, great accessibility and great amenities close to the city centre.”
“We plan to deliver liveability within a secure and healthy community through this development, and are looking to price our properties affordably for this market,” she added.
The landbank acquisition is Sunway Property’s fourth acquisition for the year, the first being a 6.16 acre land in Tampines for an executive condominium housing development (EC development) with a planned GDV of RM2.4bil (S$800mil), followed by a 9.5 acre parcel of leasehold land in Kota Damansara comprising of serviced apartments and lifestyle retail units with an estimated GDV of RM544 mil, and 6.5 acres of land in Tianjin Eco-City, China with an estimated GDV of RM770mil (RMB1.3bil) aligned with its strategy to make opportunistic acquisitions in-line with its Master Community Developer proposition.
Sunway has a total landbank of 3,356 acres amounting to RM58.7bil in GDV with a total development period of 15 years.
Source: TheStar