Sunway signs privatisation agreement with PKNS for proposed development
Sunway Berhad had entered into a privatisation agreement with the Selangor State Development Corporation (PKNS) through its 60:40 subsidiary with the latter, Sunway PKNS Sdn Bhd, to develop a mixed development on a prime 9.5-acre parcel of leasehold land in Kota Damansara in Selangor.
Sunway Berhad Property Division Managing Director Sarena Cheah signed the agreement on behalf of Sunway PKNS Sdn Bhd with PKNS CEO Datuk Mohd Azizi Mohd Zain on behalf of PKNS.
The proposed development will comprise serviced apartments and lifestyle retail units with an estimated RM 544 million in gross development value and is targeted to be completed in 2025.
Located in the matured neighbourhood of Kota Damansara, the proposed development is surrounded by a host of retail amenities including Sunway Giza, Sunway Nexis and IKEA Damansara, education institutions including Sri KDU and SEGi University as well as healthcare institutions. Sunway has also targeted to open a healthcare centre in the vicinity in 2022.
Easily accessible through major highways like the NKVE, LDP and soon to be completed DASH highway, the proposed development is about three kilometres from the Kota Damansara and Persiaran Surian MRT stations.
For the land, Sunway PKNS will pay rights value of RM 36.6 million, revenue share of RM50 million or a sum equivalent to 8.88% of the gross sales value of the development of the Land minus bumiputera discount approved by the appropriate authorities and other sale discounts and cost of purchase incentives offered by Sunway PKNS to the purchasers of the properties to be developed on the Land, whichever is higher and a portion of the profit before tax from the Proposed Development of a sum of RM38 million as PKNS is a shareholder holding 40% in Sunway PKNS.
The Proposed Development will add 9.5 acres of land to Sunway’s land bank, providing further visibility to the future earnings of the Group. Including this parcel of land, Sunway’s landbank stands at 3,294 acres including land bank in Malaysia, Singapore, China and India with a GDV of RM 56.6 bil. Sunway’s unbilled sales are at RM2.2bil as of March 2019.
This year to date, Sunway has rolled out Sunway Onsen Suites, Sunway Avila, and Sunway Velocity Two. The developments have been well-received, averaging 80% take-up rate. For 2019, Sunway will look to RM 2 billion in launches.