UEM Sunrise Bhd announced today that it had acquired 6.86 acres of prime freehold land in Cheras, Kuala Lumpur for a total consideration of RM197 million.
In a stock exchange filing today, the property developer said its wholly-owned subsidiary UEM Land Bhd had signed a sale and purchase agreement (SPA) with Accolade Land Sdn Bhd, the landowner, with preliminary plans of developing 1.8 million square feet (sq ft) of various types of competitively-priced properties aimed at young homeowners looking for residences with immediate accessibility to the city centre.
“The development has an estimated total gross development value (GDV) of over RM1 billion and is slated for a two-phase launch, with the first phase kicking off in the second half of 2022 (2H22).
“The proximity of the land to the Taman Connaught MRT Station provides UEM Sunrise an excellent opportunity to explore a transit-oriented development that meets demands of young urban professionals working in the city, complemented by a lifestyle offering in attractively priced residences,” said UEM Sunrise chief executive officer (CEO) Sufian Abdullah in a statement.
“The transit-oriented development nature of the project will provide us with the opportunity to develop a unique product combining its accessibility and integration with the public transportation system, with the demands of a post-pandemic living space, such as provisions for the low-touch economy and more open recreational facilities, at an affordable price tag.
“As UEM Sunrise continues to aggressively rebalance its land banking portfolio, we remain to be on the lookout for land that can provide value to our customers and shareholders while rebuilding our sales funnel in the short to medium term,” he added.
Following the latest acquisition, the group said its total land bank in the Greater Kuala Lumpur area stands at approximately 440.1 acres, amounting to an estimated total GDV of RM29 billion, providing the company with resilient and sustained growth in the long term.
At the noon break today, shares in UEM Sunrise ended unchanged at 42 sen, valuing the property developer at RM2.12 billion.