Sunway City Sdn Bhd (SunCity), a wholly-owned subsidiary of Sunway, today announced that it has entered into a joint venture agreement to develop an 8.45 acre parcel of leasehold land opposite its iconic Sunway Velocity development in Jalan Peel, Cheras.
SunCity will pay RM500,001 for a 50% + 1 share stake in Austral Meridian Property Sdn Bhd (AMP), the joint venture company. In addition, SunCity will also advance up to RM140,000,000 to settle the existing liabilities of AMP.
The proposed development on the newly acquired land is expected to comprise service apartments, retail shops and offices. With an estimated Gross Development Value of RM2.0 billion, the development will be implemented over a period of 10 years. It is expected to be synergistic with Sunway Velocity that is located directly opposite the land.
A RM4.0 billion development by Sunway, Sunway Velocity has performed strongly for the Group since the first launch in 2008, with more than RM1.0 billion worth of residences and offices sold thus far. The recently opened Sunway Velocity Shopping Mall has become a new landmark in the Cheras area and achieved footfall of more than a million people in less than 2 months.
Located just 5km from the Kuala Lumpur City Center, the development enjoys easy connectivity via a short walking distance to the Cochrane MRT Station and underground Maluri MRT Station & LRT Interchange. The massive population of over 800,000 in the Cheras vicinity also contributed to the appeal of the development.
With this proposed new development, the Group envisages Sunway Velocity to benefit from a larger catchment population and vice versa, residents and tenants of the new development will benefit from the amenities and conveniences at Sunway Velocity. In the near future, Sunway Velocity is expected to be further enhanced by the completion of a 4-star hotel, a medical center and 2 corporate office towers, all of which are already under construction.
Sunway has already planned for linkways to connect both development to make it easy for residents, tenants and businesses to seamlessly commute between both sides.
More information on the new development by AMP will be announced by Sunway in due course.
