Sunway And PKNS Teams Up To Develop In Kota Damansara
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By Roubeeni Mohan
Sunway Berhad and the Selangor State Development Corporation (PKNS) entered into a privatisation agreement through a 60:40 deal to develop a mixed development project on a prime 9.5-acre parcel of leasehold land in Kota Damansara.
Sunway PKNS will pay rights value of RM36.6 million for the land, revenue share of RM50 million or a sum equivalent to 8.88 percent of the gross sales value of the development of the land.
This value will also take into account the bumiputera discount approved by the appropriate authorities and other sale discounts and cost of purchase incentives offered by Sunway PKNS to the purchasers of the properties to be developed, whichever is higher.
At the same time, a portion of the profit before tax from the proposed development totaling RM38 million will belong to PKNS, as 40 percent shareholder of the joint venture.
Including this parcel of land, Sunway’s landbank stands at 3,294 acres including landbanks in Malaysia, Singapore, China and India with a GDV of RM56.6 bil. Sunway’s unbilled sales is at RM2.2 bil as of March 2019, providing further visibility to the future earnings of the Group.
The proposed development will comprise of serviced apartments and lifestyle retail units with an estimated RM544 million in gross development value and is targeted to be completed in 2025.
The agreement was signed by Sarena Cheah, Sunway Berhad Property Division Managing Director behalf off Sunway PKNS Sdn Bhd with PKNS CEO Datuk Mohd Azizi Mohd Zain.
Located in the matured neighbourhood of Kota Damansara, the proposed development is surrounded by a host of retail amenities including Sunway Giza, Sunway Nexis and IKEA Damansara, as well as education institutions including Sri KDU and SEGi University, and healthcare institutions. Sunway has also targeted to open a healthcare centre in the vicinity in 2022.
It will be easily accessible through major highways like the NKVE, LDP and soon to be completed DASH highway, the proposed development is about three kilometres from the Kota Damansara and Persiaran Surian MRT stations.
