SUNWAY City Bhd has lined up a string of well-designed upmarket property products for the next few years.
Some RM1.4bil worth of property products will be launched this year at its key development areas in Sunway Damansara, Sunway SPK, Kiara Hills and Sunway South Quay.
According to senior managing director Datuk C. K. Wong, SunCity will continue to launch innovative products within its ongoing projects.
The new projects to be launched this year are Sunway South Quay, SunCity's lakeside lifestyle development and high-end high rise residences of Palazzio Condominiums in Hartamas and Casa Kiara II in Mont'Kiara.
Next year, the company will launch high-rise residences at its signature high-end Kiara Hills development.
Sunway South Quay, which is targeted for launch in May, will further underscore SunCity's reputation as a developer of well-built high-end properties with good finishes.
The exclusive gated communities at Sunway South Quay offer well-designed residences with spectacular views of a 28-acre lake.
Phase one comprising 77 villas measuring 70ft by 100ft will be priced from RM3.15mil. The next launch in September will comprise 353 luxury condominiums.
Wong said the strong fundamentals and robust growth of the property development industry would ensure sustained growth for the company.
“The participation of Kuwait Finance House and Employees Provident Fund, which have each taken up a 20% stake in SunCity’s latest development Sunway South Quay, underscores a strong investor confidence in the company.
“Such partnerships have enabled the company to gain access to the new markets abroad, especially those in the Middle East,” he added.
Property development, which contributed some 65% to SunCity’s revenue last year, will continue to be a major earnings contributor in the coming years.
At present, the main contributors in property development are Kiara Hills, Sunway SPK, Sunway Damansara and Sunway Bukit Gambier.
SunCity’s land bank of 2,380 acres has an estimated gross development value of RM11.4bil to be realised over the next eight years.
Wong said about 70% of the properties were in the price range of between RM450,000 and RM6mil, while the balance were priced from RM180.000.
At least 60% of SunCity’s products are located in 11 locations in the Klang Valley with the rest in Penang and Ipoh.
Meanwhile, the completion of the new investment properties comprising the Sunway Pyramid Mall extension, Sunway Carnival and Monash University Sunway Campus this year will expand the company’s property investment income base.
Sunway Pyramid’s RM550mil expansion into a 1.6 million sq ft mega mall will be completed in September 2007.
The shopping mall is expected to attract 2.5 million visitors a month, compared with 1.5 million previously.
Its four shopping precincts – Fashion Central, Oasis Boulevard, Asian Avenue and Marrakesh – will provide shoppers with a new retail experience.
Sunway Carnival, SunCity’s new shopping mall in Seberang Jaya, Penang, will be opened in July.
The new RM200mil Monash University Sunway Campus in Bandar Sunway will be able to accommodate over 4,000 students.
Another new corporate development is the imminent launch of the company’s real estate investment trust (REIT) which is expected to be listed next year.
Analysts said this would turn it into a full-fledged property company.
“The injection of the company’s investment assets comprising Menara Sunway, Sunway Pyramid Mall, Sunway Resort Hotel, Pyramid Tower, Carnival Mall, and the two education premises, Sunway University College and Monash University Sunway Campus, into the REIT will have a combined asset value of between RM2.5bil and RM3bil,” an analyst with a local brokerage said.