CEO Morning Brief

UEM Sunrise Confirms Acquisition of Land Housing Giant Mall in Kelana Jaya

Publish date: Wed, 07 Jun 2023, 08:36 AM
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TheEdge CEO Morning Brief

KUALA LUMPUR (June 6): UEM Sunrise Bhd has confirmed that it is buying a 3.7-hectare freehold land in Kelana Jaya adjacent to the Damansara-Puchong Expressway (LDP) from the Employees Provident Fund (EPF) for RM155 million.

The Edge had reported the proposed deal in its May 29-June 4 edition. Quoting sources, the report said UEM plans to demolish the Giant Mall building on the land and redevelop the site.

“This is set to be the eighth retail asset to be sold by the EPF this year that is or was, previously occupied by retailer Giant. Including this sale, the total value of the assets disposed of so far this year would amount to over RM880 million,” The Edge reported.

In a statement on Tuesday (June 6), UEM Sunrise said its wholly-owned subsidiary Sunrise Innovations Sdn Bhd has inked a sale and purchase agreement with Kwasa Properties Sdn Bhd, a wholly-owned subsidiary of EPF, to acquire the land.

"The company plans to develop a mixed-use development featuring residential and retail components, to be categorised in the NEST Series under UEM Sunrise’s Happy+ product series, a product branding initiative launched in February 2023 offering homebuyers the most ideal homes that cater to their varying lifestyles and life-stage needs.

"The NEST Series focuses on multigenerational-oriented homes designed with the customers’ extended families in mind," said the property developer.

UEM Sunrise's bourse filing showed that the land is free from any encumbrance except for the tenancy granted by Kwasa Properties to GCH Retail (Malaysia) Sdn Bhd, the operator of the Giant hypermarket, expiring on Dec 16, 2023.

The proposed acquisition is expected to be completed in the first half of 2024.

UEM Sunrise's development is estimated at a total gross development value (GDV) of RM1.1 billion and targeted to be launched in 2025.

With this latest purchase, UEM Sunrise's total landbank in the Kuala Lumpur area stands at 175 hectares, with a total GDV of RM29.5 billion.

"This latest acquisition is a testament to our ongoing efforts to rebalance our landbanking portfolio and increase our presence in the Central region. We are confident that we can create more value in developing the land for the price we paid for," UEM Sunrise chief executive officer Sufian Abdullah said in the statement.

Shares in UEM Sunrise closed unchanged at 26.5 sen, giving the company a market capitalisation of RM1.34 billion.

Read also:
UEM Sunrise seen set to buy Giant Mall in Kelana Jaya from EPF

Source: TheEdge - 7 Jun 2023

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