KUALA LUMPUR: Sunway Bhd has acquired the leases of two parcels of land for RM745.3 million with a gross development value (GDV) of RM12 billion in Medini Iskandar via a joint venture (JV) with Khazanah Nasional Bhd.
In a statement yesterday, the company said the two parcels of land adjacent to each other totalled 691 acres (276.4ha), adding that the leases acquired were for a period of 99 years.
Sunway said the newly acquired land known as Zone F Medini would boost its landbank by 30% from the previous 2,145 acres, while the proposed development will increase the company’s current GDV to RM32 billion. As a result, Sunway will become one of the largest land holders in Iskandar Malaysia.
“With the acquisition, Sunway will have 755 acres of development land in Johor, in addition to the existing land at Bukit Lenang, with estimated total GDV of RM13 billion,” it said.
Meanwhile, in an email reply to The Edge Financial Daily, Sunway said the parcels of land were controlled and owned by Iskandar Investment Bhd (IIB), which had chosen not to sell the land but grant leases to developers so that they can develop and sell the land to end-buyers.
Sunway said it intended to extend the lease for another 30 years from IIB for which a consideration of 10% of the purchase price would need to be paid to IIB.
The company also announced yesterday its JV with Dayang Bunting Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah to form Semerah Cahaya Sdn Bhd which would principally be involved in conceptualising, managing, implementing and developing the two parcels of land.
Sunway currently holds 38% in the JV but will increase its holdings to 60% within 54 months from the date of the lease purchase agreement.
Sunway founder and chairman Tan Sri Dr Jeffrey Cheah said the acquisition was in line with its strategy to continue extending its expertise in building and managing integrated cities, as exemplified by its integrated developments in Bandar Sunway, Sunway City Ipoh, Sunway Velocity, and Sunway Damansara.
“We want to replicate this expertise in Johor and develop an iconic development which will capture the local, regional and international market segments as we have done with our integrated developments.”
“Together with Khazanah, we are confident that we will be able to successfully establish a strong foothold in the state in the near future,” he said.
Cheah said the project was expected to contribute positively to Sunway’s future earnings and cash flow by 2013.
Khazanah managing director Tan Sri Azman Mokhtar said Sunway’s participation in Iskandar Malaysia further demonstrated strong local investor confidence in the region’s continuing progress.
“Sunway has a proven track record as a successful master developer in Malaysia and this joint-venture is an indication of Khazanah’s deepening collaborative partnerships with the private sector.
“We are confident this joint-venture will further boost Medini Iskandar’s progress as a catalyst development for Iskandar Malaysia,” he said.
This article appeared in The Edge Financial Daily, December 20, 2011.
In a statement yesterday, the company said the two parcels of land adjacent to each other totalled 691 acres (276.4ha), adding that the leases acquired were for a period of 99 years.
Sunway said the newly acquired land known as Zone F Medini would boost its landbank by 30% from the previous 2,145 acres, while the proposed development will increase the company’s current GDV to RM32 billion. As a result, Sunway will become one of the largest land holders in Iskandar Malaysia.
“With the acquisition, Sunway will have 755 acres of development land in Johor, in addition to the existing land at Bukit Lenang, with estimated total GDV of RM13 billion,” it said.
Meanwhile, in an email reply to The Edge Financial Daily, Sunway said the parcels of land were controlled and owned by Iskandar Investment Bhd (IIB), which had chosen not to sell the land but grant leases to developers so that they can develop and sell the land to end-buyers.
Sunway said it intended to extend the lease for another 30 years from IIB for which a consideration of 10% of the purchase price would need to be paid to IIB.
The company also announced yesterday its JV with Dayang Bunting Ventures Sdn Bhd, a wholly-owned subsidiary of Khazanah to form Semerah Cahaya Sdn Bhd which would principally be involved in conceptualising, managing, implementing and developing the two parcels of land.
Sunway currently holds 38% in the JV but will increase its holdings to 60% within 54 months from the date of the lease purchase agreement.
Sunway founder and chairman Tan Sri Dr Jeffrey Cheah said the acquisition was in line with its strategy to continue extending its expertise in building and managing integrated cities, as exemplified by its integrated developments in Bandar Sunway, Sunway City Ipoh, Sunway Velocity, and Sunway Damansara.
“We want to replicate this expertise in Johor and develop an iconic development which will capture the local, regional and international market segments as we have done with our integrated developments.”
“Together with Khazanah, we are confident that we will be able to successfully establish a strong foothold in the state in the near future,” he said.
Cheah said the project was expected to contribute positively to Sunway’s future earnings and cash flow by 2013.
Khazanah managing director Tan Sri Azman Mokhtar said Sunway’s participation in Iskandar Malaysia further demonstrated strong local investor confidence in the region’s continuing progress.
“Sunway has a proven track record as a successful master developer in Malaysia and this joint-venture is an indication of Khazanah’s deepening collaborative partnerships with the private sector.
“We are confident this joint-venture will further boost Medini Iskandar’s progress as a catalyst development for Iskandar Malaysia,” he said.
This article appeared in The Edge Financial Daily, December 20, 2011.
