by FAYYADH JAAFAR / pic source: uemsunrise.com
PROPERTY developer UEM Sunrise Bhd has acquired a prime piece of land in downtown Kuala Lumpur (KL), at the intersection of Jalan Sultan Yahya Petra (formerly known as Jalan Semarak) and Jalan Padang Tembak, for a total consideration of RM384 million.
The agreement was signed between UEM Sunrise and Nipponkey Sdn Bhd, the landowner, with preliminary plans to develop residential products catering to young homeowners and working professionals looking for proximity to the KL City Centre (KLCC).
It is estimated that the development has a total gross development value (GDV) of RM1.5 billion and is slated for a 2024 launch.
According to UEM Sunrise CEO Sufian Abdullah, the company is confident that the development will be well received due to the high and sustained demand for small to mid-sized products close to KLCC.
“This development sits at a very strategic location, just being at the doorstep of the KLCC 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 priced below the RM1 million price point.
“We are confident that this development would be a welcomed addition to city dwellers looking for the convenience coupled with the lifestyle that comes with living in the heart of KL,” said Sufian.
The acquisition will be satisfied partly via cash amounting to RM235.8 million, with the remaining total consideration anticipated to be settled in-kind via the company’s lands in Gerbang Nusajaya in Iskandar Puteri, Johor, measuring 107.82 acres (43.63ha).
The arrangement 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 of this 6.39-acre prime land is anticipated to reinforce and stabilise the company’s future product pipeline in line with its “Triage, Stabilise, Sustain” strategy of transforming the company into a balanced real estate player.
“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 from our lands in Iskandar Puteri.
“UEM Sunrise remains on the lookout for land that can provide value to our customers and shareholders while fortifying our launch funnel in the short to medium term,” said Sufian.
The development boasts an unobstructed view of the KL city skyline, including the Titiwangsa Lake Garden. It has excellent connectivity to the other parts of the city via major highways, including the Duta Ulu-Kelang Expressway, Ampang-Kuala Lumpur Elevated Highway, Maju Expressway and the Kuala Lumpur Middle Ring Road 1.
With this latest addition, UEM Sunrise’s total landbank in the Greater KL area stands at approximately 655.8 acres, amounting to an estimated total of RM30.7 billion in GDV.