Sunway Berhad plans to launch its latest transit-oriented development (TOD) in Sri Hartamas, Kuala Lumpur featuring serviced apartments, retail and wellness suites, by early 2025, said Sarena Cheah, managing director of Sunway Property.
She said the acquisition of the plot of land for the proposed TOD project comes ready with an approved development order with a plot ratio of 5.
"We are excited to add this prime land to our portfolio and to continue our commitment to creating vibrant integrated communities. This underscores our confidence in the Malaysian property market, and we are confident that this development will be highly desirable amongst our multiple customer segments," she said.
Maybank Investment Bank (Maybank IB) is neutral on Sunway's latest land acquisition in Sri Hartamas.
"We think pricing is fair. The land will be developed into a mixed development with an estimated RM850 million to RM1.1 billion in gross development value. We estimate the new development to enhance earnings per share by five sen per annum from the financial year 2026 onwards assuming a pre-tax margin of 20 per cent and development period of five years," it said in a note today.
Maybank IB said while traffic is rather congested at the area and the land is next to Penchala Link, the land is surrounded by mature townships, shopping malls, and international schools.
Sunway's wholly-owned subsidiary, Sunway Living Space Sdn Bhd, had on May 12 signed a sale and purchase agreement with YNH Property Berhad's wholly-owned subsidiary Kar Sin Bhd to acquire 5.09-acres of prime freehold land in Sri Hartamas for RM170 million.
The proposed acquisition is conditional on, amongst others, the approval of the shareholders of YNH, Kar Sin, and Sunway Living Space, and is expected to complete in the fourth quarter of 2023.
The Sri Hartamas project will be developed based on the TOD concept, where residents will be able to enjoy connectivity from the planned Sri Hartamas and Mont Kiara MRT stations.