Opportunities for development in inner-city Kuala Lumpur are becoming scarcer, so much so that when a land transaction takes place these days it marks a tremendous win for the purchaser.
From that perspective, Sunway Bhd’s recent purchase of 4.53 acres along Jalan Belfield in the Kampung Attap vicinity represents a major score for the leading development company.
Acquiring the freehold parcel last week for RM165 million (approximately RM836.17psf), the company is buoyant about prospects for the site, which is located close to the old Istana Negara and its surrounding greenery on one end and the upcoming Warisan Merdeka (Malaysia’s soon-to-be tallest building) on the other.
According to a statement by Sunway, it is proposing the development of serviced apartments with a limited number of lifestyle retail units on the land.
In total, the mixed development will have an estimated gross development value (GDV) of RM1.1 billion, comprising RM1.05 billion worth of serviced apartments and RM50.0 million of retail units.
The endeavour is planned to take shape a five-year development period and it is slated to be launched the second half of 2018.
Despite it being early days, Sunway said it is targeting a price tag of RM550,000 and above for the serviced apartments.
Among the appealing factors future buyers can look forward to, said Sunway, is convenient connectivity to KLCC, the Bukit Bintang shopping belt, KL Sentral and Perdana Botanical Gardens.
The verdant greenery surrounding the site also offers the rarity of tranquil surroundings while enjoying the conveniences provided by inner-city living.
Additionally, the site boasts easy access to and from the Federal Highway as well as the North and South Bound PLUS Expressway via Jalan Syed Putra, Jalan Damansara and Jalan Istana.
Sunway said the acquisition is expected to provide further earnings visibility for the conglomerate.
Sunway Bhd’s land bank currently stands at 3,305 acres with a total GDV of RM 51.6 billion. Besides its sizeable land bank for development, Sunway also owns and manages over 30 million square feet of commercial properties.
The recent acquisition follows Sunway’s acquisition earlier this year of an 8.45-acre prime parcel along Jalan Peel, which is earmarked for the Sunway Velocity TWO project. The project is positioned next to the Cochrane Mass Rapid Transit (MRT) station as well as the Maluri MRT and LRT interchange.
Last month, Sunway Bhd made waves by moving its listing from the “Properties” counter to the “Trading/ Services” counter on the Main Board of Bursa Malaysia securities.
The reclassification, the company said, better reflects its strength as a conglomerate, with its diverse yet complementary businesses that are mostly in leadership positions in their respective sectors.