The land was purchased through an open tender. It took into consideration the development potential of the land, which met its required internal rate of return.
“Given Sunway’s knowledge of the market value of the surrounding properties and the potential development value of similar land within the vicinity, i.e. Kelana Jaya, no valuation was carried out on the land,” it added.

It will buy the land through bank borrowings and/or internally generated funds and expected the acquisition to be completed by the second half of the year.
Sunway’s net gearing stood at 0.3 times as at end-December 2014.

“Properties in Petaling Jaya are welcomed due to scarcity of land and continuous population growth. Petaling Jaya, being one of the most developed areas in terms of population and economy, has long been an area of focus by Sunway.

“Sunway is confident that the project will receive positive response when it is launched,” the company said.
It had conducted a feasibility study before bidding for the land while it also studied surrounding projects to assess the viability of the project.

Other nearby integrated projects include WCT Holdings Bhd’s RM1.8bil Paradigm commercial development and Mah Sing Group Bhd’s RM3.2bil Icon City.

Paradigm at Kelana Jaya consists of a shopping mall, corporate offices, serviced residences and hotel suites.
Meanwhile, Icon City, located at SS8, Petaling Jaya, comprises serviced apartments, retail shops, mall, offices and hotel on a 20 acres.
Sunway closed 1 sen lower to RM3.40 with a market cap of RM5.94bil.


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