Sunway-PKNS collaborate on RM544m GDV Kota D'sara development

Its job scope for the contract involves supplying concrete cement and metal for the upgrading of the Train Cargo Terminal at Padang Besar, Perlis, Dolphin said in a filing with Bursa Malaysia.

KUALA LUMPUR: Sunway Bhd's 60%-owned joint venture with Selangor State Development Corp (PKNS) has entered a privatisation agreement with the latter company to develop a mixed development on a 9.5-acre parcel of leasehold land in Kota Damansara.

The proposed development, targeted for completion in 2025, will comprise serviced apartments and lifestyle retail units with an estimated GDV Of RM544mil.

For the development rights of the land, the joint venture will pay to PKNS a rights value of RM36.6mil, a revenue share of RM50mil or a sum equivalent to 8.88% of the gross sales value of the development of the land minus sales discounts and other incentives, whichever is higher.

As a 40% shareholder of the joint venture, PKNS will also be entitled to a portion of the profit before tax of RM38mil.

According to the stock exchange filing, the project will be close to retail amenities such as Sunway Giza, Sunway Nexis and IKEA Damansara as well as education institutions including Sri KDU and SEGi University, and Thomson Hospital.

"The Land also has easy access to major highways like the NKVE, LDP and soon to be completed DASH highway. In terms of public transportation, the Land is
about 3km from the Kota Damansara and Persiaran Surian MRT stations. 

"Based on the above, Sunway believes that the Proposed Development will be attractive to potential buyers," it said in a statement.

With the addition of this parcel of land, Sunway's landbank stands at 3,294 acres with a total GDV of RM56.6bil.

The group's unbilled sales stand at RM2.2bil as at March 2019.

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