In a filing with Bursa Malaysia, the property-construction group said its subsidiary Daksina Harta Sdn Bhd had signed an agreement to buy the land - with the partially completed development on it - for RM63mil.
The land spans 24,281.1 sq metres before deducting the portion that was compulsorily acquired by the relevant authority measuring 2,928 sq metres.
The 5.28-acre land, acquired from Concept Housing Development (M) Sdn Bhd, contains a partially completed commercial complex comprising a three-storey podium (three units of office space), two office blocks of 20 and 12 storeys with a total of 26 office space units, and a 10-storey car park.
The purchase was a related-party transaction, as Concept Housing Development’s directors and major shareholders are Cheah He Mooi (Sunway executive chairman Tan Sri Jeffrey Cheah’s sister) and her husband Yap Chin Gum.
In its statement, Sunway said it planned to continue building on the semi-completed structure but would replace the original development with a proposed mixed-development comprising a retail podium/commercial lots, and serviced apartments/SoHo.
The project is expected to be completed within five years.
“The land is located less than 2km from Kajang town and next to the Sg Jernih MRT Station. Due to its immediate proximity to the existing MRT station, the proposed development will be another transit oriented development status for Sunway Group,” Sunway said.
It added: “The reinforced concrete structure frame work that has been completed, potentially will be salvaged with minor adjustment to accommodate the new proposed development. This represents substantial savings on the construction costs and timing for the proposed development.”
* See also Sunway to redevelop land into RM1.4bil mixed development
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