- PETALING JAYA: Sunway REIT Management Sdn. Bhd., the Manager of Sunway Real Estate Investment Trust (Sunway REIT), announced that RHB Trustees Berhad, the trustee of Sunway REIT, has entered into a conditional sale and purchase agreement (SPA) with Sunway Medical Centre Penang Sdn Bhd for the proposed asset disposal of Sunway Hotel Seberang Jaya at a consideration of RM60 million (Proposed Asset Disposal).
Sunway Hotel Seberang Jaya was originally acquired in 2010 for RM52 million, with an additional RM15 million invested over the years in asset enhancement initiatives. The asset disposal consideration represents a 9.1% premium over the latest appraised value, and Sunway REIT expects to recognise a gain on disposal of approximately RM4 million (excluding estimated incidental costs on disposal) upon completion of the transaction.
The Proposed Asset Disposal is part of Sunway REIT’s strategic capital recycling initiative aimed at optimising portfolio quality and long-term value creation. In line with this, Sunway REIT plans to develop a brand-new Sunway Hotel Seberang Jaya, seamlessly integrated atop the existing Sunway Carnival Mall. The new hotel is expected to enhance guest convenience and drive increased footfall to the mall.
This integrated development will feature upgraded facilities including a ballroom and direct connectivity to the mall, positioning it as a competitive venue for Meetings, Incentives, Conventions and Exhibitions (MICE) in mainland Penang. Rather than investing to refurbish the 27-year-old existing hotel, the capital will be more effectively deployed towards the construction of the new hotel, offering improved returns and future-proofing the asset.
The asset disposal, at a capitalisation rate of 5.3% based on 2024 net property income, allows Sunway REIT to monetise the asset at an attractive value and reinvest in a more strategically aligned development.
Sunway REIT Management Sdn. Bhd. acting CEO/ chief financial officer Ng Bee Lien commented, “The Proposed Asset Disposal of Sunway Hotel Seberang Jaya is part of our proactive portfolio rebalancing strategy to unlock value and redeploy capital into future assets. By investing in a brand-new integrated hotel atop Sunway Carnival Mall, we aim to enhance asset synergy, elevate guest experience, and capture greater demand from the business and MICE segments in mainland Penang. This move underscores our commitment to long-term value creation and sustainable growth for our unitholders.”
