19 APRIL, KUALA LUMPUR – Sunway Berhad’s (Sunway) wholly-owned subsidiary, Sunway Rahman Putra Sdn Bhd, has today signed a Sale and Purchase Agreement to acquire a 6.59-acre parcel of prime freehold land at Jalan Cochrane, Kuala Lumpur from Mutiara Rini Sdn Bhd, a wholly-owned subsidiary of Boustead Properties Berhad, for a purchase consideration of RM233.4 million.
The land is strategically located for a transit-oriented mixed development comprising serviced apartments with a retail podium and is located directly opposite the Cochrane MRT station and just a stone’s throw away from MyTOWN Shopping Centre. The station is part of the Sungai Buloh-Kajang Line and brings commuters directly to the heart of Kuala Lumpur and other major suburbs like Cheras and Damansara.
Most significantly, the station is just one stop away from the Tun Razak Exchange (“TRX”), the future International Financial District of Kuala Lumpur, which has now reached its inflection point, with the recent completions of Exchange 106, Menara Prudential and HSBC TRX. TRX is expected to house more than 45,000 employees in the near future.
Commenting on the acquisition, Sunway Property’s Managing Director, Sarena Cheah said, “We are extremely excited with this acquisition as it will strengthen our presence in this vicinity where we have already developed and invested substantially in the very successful Sunway Velocity and Sunway Velocity TWO, both of which are MSC Cybercentre status developments. We believe the future is even more exciting with the upcoming completions in TRX, which will bring in a substantial population of high income, professional workers. We can imagine them wanting to stay at our proposed development here which is just one station away from TRX, with all the amenities at its doorstep and at a much better value.”
Located at the fringe of the Golden Triangle, Cochrane has gentrified substantially over the years with Sunway playing a key role in the process. Sunway Velocity, with a GDV of over RM4.0 billion, is just 200 meters away from the site and is a highly successful integrated development with over 23 acres of freehold land. The development encompasses Sunway Velocity Mall, a 1-million square feet net lettable area shopping mall, Sunway Velocity Hotel, a 350-room hotel, Sunway Medical Centre Velocity, a 240-bed medical centre, Sunway College @ Velocity, two office towers with a total floor area of 375,000 square feet and residential units. The developer’s latest development, Sunway Velocity TWO, with a GDV of RM2 billion, is located on another 8.5-acre site right opposite Sunway Velocity and is linked to 3 MRT and 2 LRT stations.
The vendor, Boustead Group, has also developed significant landmarks in the vicinity, with MyTOWN Shopping Centre located just diagonally across this site and One Cochrane Residences further up the road. With the upcoming completion of The Exchange TRX Mall, residents at the proposed development on this site will be spoilt for choice when it comes to retail options.
Parents with school-going children will undoubtedly appreciate the selection of reputable schools that this neighbourhood has to offer, such as Tsun Jin Primary School, Taylor’s International School and Sunway College @ Velocity, all within a 1-km radius.
Connectivity of the site via major roads is also enviable with Jalan Cochrane feeding traffic to major highways such as the Maju Expressway (MEX), the SMART tunnel and the Sungai Besi Expressway.
Touching on the proposed development on the site, Sarena said, “The proposed gross development value will be at least RM1.15 billion. The development will comprise serviced apartments that sit on top of a retail podium, which will benefit from road frontages on all four sides of the site.”
This acquisition is Master Community Developer, Sunway Property’s, second landbank acquisition for the year and reflects its confidence in the recovery of the property market in the coming years.
Cheah adds, “The property market in Malaysia has experienced several challenging years but we have faith that with economic recovery post-Covid, the demand will return, especially in a strong location such as Cochrane where there is a convergence of convenience and affordability – a combination that has become scarce in strong city locations. This exciting mixed-development will be highly desirable amongst our multiple customer segments.”
Currently, Sunway’s total landbank stands at 3,339 acres with a potential gross development value of RM52.1 billion over a total development period of more than 15 years, paving the way for resilient growth.