KUALA LUMPUR: UEM Sunrise Bhd has acquired 6.39 acres of freehold land in Kuala Lumpur, at the intersection of Jalan Sultan Yahya Petra Jalan Padang Tembak for RM384mil.
The developer signed a Sale and Purchase Agreement with land owner Nipponkey Sdn Bhd with plans to develop the land into a residential property for young homeowners and working professionals.
"The land sits at a very strategic location of just being at the doorstep to the KL City Centre via a short drive along Jalan Sultan Yahya Petra and Jalan Tun Razak. We have observed a high and sustained demand for small to mid-sized products close to KLCC and priced below the RM1 million price point,” UEM Sunrise chief executive officer Sufian Abdullah said.
The acquisition will be partially satisfied through cash amounting to RM235.8mil with the remaining total consideration to be settled through UEM Sunrise’s Gerbang Nusajaya land in Iskandar Puteri, Johor measuring 107.82 acres.
This allows UEM Sunrise to rebalance its landbank portfolio, divesting the lands in Gerbang Nusajaya in exchange for lands located in the central region that can provide a quick turnaround. The development has an estimated total gross development value of RM1.5bil and is estimated to launch in 2024.
The proposed development will leverage on its connectivity to major highways such as the Duta Ulu-Kelang Expressway (Duke), Ampang-Kuala Lumpur Elevated Highway (Akleh), Maju Expressway (MEX) and the Kuala Lumpur Middle Ring Road 1 (MRR1). It will also be easily accessible amenities such as schools, shopping malls and healthcare providers.
"We are satisfied with the fair value of the land in Jalan Sultan Yahya Petra, considering the size and its strategic location in addition to a readily available set of plans to kickstart the development. The transfer of the lands in Gerbang Nusajaya to Nipponkey as in-kind payment for the 6.39-acre land, allows us to unlock further value of our lands in Iskandar Puteri. UEM Sunrise remains on the lookout for lands that can provide value to our customers and shareholders while fortifying our launch funnel in the short to medium term," said Sufian.
To date, UEM Sunrise's total landbank in the Greater Kuala Lumpur area stands at 655.8 acres.