PETALING JAYA: Sunsuria Bhd has entered into two agreements to venture into the development of a high-rise residential project in Bangsar @ Lorong Maarof and a high-rise mixed commercial project along Lorong Tuanku Abdul Rahman in Kuala Lumpur.
Under a conditional shares subscription and shareholders’ agreement (SSSA) with Bangsar Hill Park Development Sdn Bhd (BHP Development), Suez Capital Sdn Bhd, Dasar Temasek Sdn Bhd and Sunsuria KL Sdn Bhd, Sunsuria will acquire a 51% stake in property developer BHP Development for RM8.44 million.
The SSSA will see Sunsuria developing a parcel of residential development land measuring 9.82 acres along Lorong Maarof in Bangsar to be launched under the project name Bangsar Hill Park.
With an estimated gross development value (GDV) of RM3.01 billion, Bangsar Hill Park comprises eight blocks of residential apartments. Designed with urban resort living in mind, Blocks B, C, D and E are condominium units with an average built-up area of 1,187 square feet (sq ft) while Blocks F and G are double-volume condominium units averaging 1,201 sq ft in size.
Blocks A and H will be residential apartments under Dewan Bandaraya Kuala Lumpur and Rumah Mampu Milik Wilayah Persekutuan. Land clearing and demolition works on the site have commenced as of last month. Block D, or Verdura, was launched in mid-September 2020 to strong buying response. The entire development is estimated to be completed by 2028.
Sunsuria also entered into a conditional shares sale and purchase agreement (SSPA) to acquire an investment holding company Bumilex Construction Sdn Bhd for RM2.
Bumilex, via its 51% subsidiary Montflex Sdn Bhd, owns the development rights over two plots of land along Lorong Tuanku Abdul Rahman in Kuala Lumpur.
Under the SSPA, Sunsuria plans to develop the land into a high-rise mixed commercial project known as Nadi @TAR, which measures 1.16 acres in total.
The proposed development has an estimated GDV of RM524.8 million and will feature seven storeys of retail space, 22 storeys of office suites with an office lobby, a 10-level parking lot, three storeys of office space with a multipurpose hall; and one-storey of retail space.
Construction for the commercial development is set to commence in the second half of 2021 and is expected to be completed by the end of 2025.
The acquisitions are expected to contribute positively to the earnings of Sunsuria over the long term through income contribution from the development projects, as well as opportunities for the group’s construction arm to tender for construction contracts to develop Bangsar Hill Park and Nadi @TAR.
Sunsuria executive chairman Tan Sri Ter Leong Yap said these investments and its proposed new developments namely Bangsar Hill Park and Nadi @TAR will contribute positively to the group’s earnings in the long run.
“We are confident that the residential and commercial units will see strong demand among buyers due to their strategic locations in mature neighbourhoods where development land is scarce and buyers can enjoy the convenience of living and working close to major shopping malls, hotels, and offices. While we exercise prudence in investments amid a Covid-19 economy, we remain committed to invest in partnerships and agreements that deliver long-term value to our customers and shareholders,” said Ter.
