Sunway Bhd will undertake a transit-oriented mixed development worth RM1.15 billion on a piece of the newly acquired land on Jalan Cochrane in Kuala Lumpur.
The diversified group bought the land measuring 2.7 hectares from Boustead Properties Bhd for RM233.4 million.
Its wholly-owned subsidiary Sunway Rahman Putra Sdn Bhd and Boustead Properties' wholly-owned unit Mutiara Rini Sdn Bhd signed the sale and purchase agreement for the said land today.
Sunway Property managing director Sarena Cheah said the acquisition would strengthen the group's presence in the vicinity.
The land is strategically located for transit-oriented mixed development and is located directly opposite the Cochrane MRT station and nearby MyTOWN Shopping Centre.
Cheah said the development will comprise serviced apartments that sit on top of a retail podium, which will benefit from road frontages on all four sides of the site.
"We believe the future is even more exciting with the upcoming completion of the Tun Razak Exchange (TRX), which will bring in a substantial population of high-income, professional workers.
"We can imagine them wanting to stay at our proposed development here which is just one station away from TRX, with all the amenities at its doorstep and at a much better value," she said in a statement.
Sunway Property had already developed and invested substantially in Sunway Velocity and Sunway Velocity TWO, both of which are MSC Cybercentre status developments, she added.
Boustead Properties chief operating officer Eason Phan said in a separate statement that it had leveraged on a timely opportunity to not only unlock the value of the said landbank but also realise stronger returns on the company's other investment properties in the Jalan Cochrane area.
Phan said the strategic location, easy accessibility, and ready infrastructure in the area allowed the company to monetise the land at a premium based on its initial cost of investment.
"We are confident that the upcoming development by the acquirer (Sunway) will result in substantially increased population in the area while spurring higher footfall into MyTown," he said.