PETALING JAYA: Sunway Bhd has acquired prime land in the neighbourhood of Mutiara Bukit Jalil following its 100% acquisition of Sterling Paradise Sdn Bhd.
The group’s wholly-owned subsidiary Sunway City Sdn Bhd inked an agreement to acquire Sterling Paradise at RM15mil, which come with the rights to 47 parcels of freehold land measuring 11.8 acres.
Sunway said the lands are strategically located for a potential residential-led mixed-use scheme.
It added that Sterling Paradise secured the lands on relatively favourable terms at a purchase consideration of 15% of the gross development value of the future development, less a fixed sum of RM36.7mil.
The developer said the variable nature of the purchase price with only RM30mil to be paid upfront will allow Sunway greater agility in pricing its future development to meet the market’s shifting demands.
The land come with an approved development order which will accelerate its speed to market. Sunway expects the development to be ready for launch by the second half next year, with an expected completion in 2026 that will contribute positively to its earnings.
Figures from Bank Negara showed that first-time home buyers formed 44% of successful housing loan applicants for the first half this year, the highest level in the last five years.
“This, coupled with the fact that property prices between RM300,000 and RM1mil forms 63% of all housing loan approvals, indicate the resilience of properties at this price point, despite the challenging market. “With this in mind, Sunway seeks to introduce a lifestyle development that is catered to this target group in this upcoming development, ” it said in a statement.