Sunway, PKNS to undertake RM544 mln development in Kota Damansara

Last update: 01/07/2019

KUALA LUMPUR,  July 1 (Bernama) -- Sunway PKNS Sdn Bhd, a 60:40 joint-venture between Sunway Bhd and the Selangor State Development Corporation (PKNS), will develop a mixed development project in Kota Damansara, Selangor, with a gross development value (GDV) of RM544 million.

The company today inked a privatisation agreement with PKNS for the rights to develop serviced apartments and lifestyle retail units on the prime 3.84-hectare parcel of leasehold land.

The units are targeted to be completed in 2025, Sunway said in a statement.

For the land, Sunway PKNS will pay rights value of RM36.6 million, revenue share of RM50 million or a sum equivalent to 8.88 per cent of the gross sales value of the development, and part of the pre-tax profit from the proposed development comprising RM38 million, as PKNS is a 40 per cent shareholder in Sunway PKNS.

The RM50 million revenue share to be paid will be less any bumiputera discount approved by the appropriate authorities and other sale discounts, and cost of purchase incentives offered by Sunway PKNS to the property buyers, whichever is higher.

Sunway's property division managing director Sarena Cheah signed the privatisation agreement on behalf of Sunway PKNS while PKNS was represented by chief executive officer Datuk Mohd Azizi Mohd Zain.

Sunway updated that its landbank now stands at 1,333.04 hectares, including land bank in Malaysia, Singapore, China and India, with a GDV of RM56.6 billion. 

Unbilled sales totalled RM2.2 billion as of March 2019 and the group expects RM2 billion in launches this year, it said.