KUALA LUMPUR, June 4 — Developer UEM Sunrise Berhad has acquired 6.86 acres of prime freehold land in Taman Connaught, Cheras – land adjacent to an MRT station – for a total consideration of RM197 million.
The company said in a statement that it signed a Sale and Purchase Agreement with the land owner, Accolade Land Sdn Bhd, via its wholly owned subsidiary, UEM Land, with preliminary plans of developing 1.8 million square feet of various types of competitively priced products aimed at young homeowners looking for residences with immediate accessibility into the city centre.
The development has an estimated total Gross Development Value of over RM1 billion and is slated for a two-phase launch, with the first phase kicking off in the second half of 2022.
“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 the demands of young urban professionals working in the city and complemented by a lifestyle offering in attractively priced residences,” said UEM Sunrise Chief Executive Officer Sufian Abdullah.
This land acquisition project marks the company’s second major acquisition this year and is aligned with the company’s efforts in intensifying its focus in acquiring strategic lands with fast turnaround time in matured prime locations and solid speed to the market.
“This 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 lands that can provide value to our customers and shareholders while rebuilding our sales funnel in the short to medium term,” said Sufian.
With the latest addition, UEM Sunrise’s total landbank in the Greater Kuala Lumpur area stands at approximately 440.1 acres amounting to an estimated total of RM29 billion in gross development value, providing the company with resilient and sustained growth in the long term.
In a separate statement, Accolade’s directors said this sale has alleviated its financial position and the proceeds will give it the opportunity to increase its landbank which is in line with its long-term strategy growth.
“Accolade is currently looking for opportunities to acquire strategic landbank within the Klang Valley as it is confident in the property market post pandemic and it sees tremendous growth opportunity in Malaysia in the foreseeable future,” it said.
