Sunway Bhd has formed a joint venture with MKH Bhd to undertake an RM540 million transit-oriented freehold mixed development on a 5.28-acre piece of land in Kajang. The development will comprise commercial lots and residential units, including affordable homes, and is expected to be launched in the fourth quarter of next year, with completion within four years.
Located less than a kilometre from Kajang town, the development will be directly linked to the Sg Jernih MRT Station via a link bridge. A joint venture vehicle called Daksina Harta Sdn Bhd was formed after Sunway’s unit SunwayMas Sdn Bhd signed a shareholders’ agreement with Perkasa Bernas (M) Sdn Bhd, a unit of MKH.
This was done via SunwayMas’ disposal of four shares in Daksina to Perkasa, at a total consideration of RM5 million. The basis of the Purchase Consideration of RM5 million for the Proposed Acquisition of 40% of the share capital of Daksina. Both Perkasa and SunwayMas agree that the current market value of the Land will be 15% of the estimated gross development value of the Proposed Development of RM540 million. The Purchase Consideration was calculated based on the difference between the revalued land cost and the current net liabilities position of Daksina based on its latest audited financial statements for year ended 31 December 2017 and its latest management account dated 30 September 2018.
source: Bursa Malaysia, TheEdge
Sunway acquired the site for RM63 mil in Aug 2017
Sunway Bhd is taking over a discontinued commercial development project in Kajang and aims to replace it with a mixed development having an estimated gross development value of RM460mil.
The property-construction group said its subsidiary Daksina Harta Sdn Bhd had signed an agreement to buy the land – with the partially completed development on it – for RM63mil. The land spans 24,281.1 sq metres before deducting the portion that was compulsorily acquired by the relevant authority measuring 2,928 sq metres.
The 5.28-acre land, acquired from Concept Housing Development (M) Sdn Bhd, contains a partially completed commercial complex comprising a three-storey podium (three units of office space), two office blocks of 20 and 12 storeys with a total of 26 office space units, and a 10-storey car park.
The purchase was a related-party transaction, as Concept Housing Development’s directors and major shareholders are Cheah He Mooi (Sunway executive chairman Tan Sri Jeffrey Cheah’s sister) and her husband Yap Chin Gum.
In its statement, Sunway said it planned to continue building on the semi-completed structure but would replace the original development with a proposed mixed-development comprising a retail podium/commercial lots, and serviced apartments/SoHo.
The land is located less than 2km from Kajang town and next to the Sg Jernih MRT Station. Due to its immediate proximity to the existing MRT station, the proposed development will be another transit oriented development status for Sunway Group.