Sunway Bhd’s subsidiary, Umech Land Sdn Bhd, in which it holds a 70% stake, has entered into a joint development agreement with Penang Development Corp (PDC) for a 559-acre industrial land in Batu Kawan, Penang.
In exchange for the development rights, PDC will receive an entitlement worth RM646.02 million, with RM64.6 million upfront and the remainder in four instalments.
The joint project, named “Batu Kawan Industrial Park 2,” is expected to include factories, industrial lots, and commercial components with a gross development value (GDV) of at least RM3.5 billion.
The investment will be funded through Umech Land’s internal funds and banking facilities.
Sunway’s total landbank stands at 3,312 acres with a potential gross development value of RM53.9 billion over more than 15 years.
Sunway’s shares closed at RM1.99, down 1%, with the company’s market capitalisation at RM9.95 billion. –TMR