Sunway Bhd has acquired five plots of land with a total size of 17 acres in Kelana  Jaya  for  RM286m  (RM386  psf).  The  acquisition  will  be  funded internally  and  through  bank  borrowings.  Sunway  has  proposed  a  mixed development comprising of 7 residential blocks with a commercial podium. The project will have an estimated GDV of RM1.8bn with approximately 5 years of development period. Sunway targets to launch the project in 2H16 (Source: Bursa Malaysia).

Comments:  A positive development and in line with Sunway’s objective to replenish  its  landbank  within  the  Klang  Valley  vicinity.  The  land  is strategically  located  within  the  prime  area  or  Petaling  Jaya.  It  has  good connectivity  and  easy  access  to  major  highways,  including  Lebuhraya Damansra  Puchong,  Federal  Highway,  NPE  and  NKVE.  The  land  is approximately  600m  walking  distance  from  the  Setia  Jaya  KTM/BRT station. The acquisition raises its total landbank to 3,380 acres with a total GDV  of  RM50.8bn  (effective  total  GDV  of  32.1bn).  Maintain  BUY  on Sunway with an unchanged target price of RM3.90.

Source: Affin Hwang Capital Research - 12 May 2015