Sunway City in Cheras JV property project, GDV RM2b

KUALA LUMPUR: Sunway Property's unit has purchased an 8.45 acre leasehold land in Jalan Peel, Cheras where it will jointly undertake a property project with an estimate gross development value (GDV) of RM2.5bil.

Sunway City Sdn Bhd (SunCity) had on Friday inked a joint venture agreement to develop the leasehold land, which is opposite its iconic Sunway Velocity development.

Under the agreement, SunCity will pay RM500,001 for a 50% + one share stake in Austral Meridian Property Sdn Bhd (AMP), the joint venture company.

“In addition, SunCity will also advance up to RM140mil to settle the existing liabilities of AMP,” it said.

SunCity said the project, with a GDV of RM2bil, would comprise service apartments, retail shops and offices and the development would be over 10 years.

“It is expected to be synergistic with Sunway Velocity that is located directly opposite the land,” it said.

Sunway Velocity is a RM4bil development by Sunway and since the first launch in 2008, more than RM1bil worth of residences and offices has bee sold far.

SunCity pointed out 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 two months.

It also said the development site, ust 5km from the Kuala Lumpur City Center, ensures 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 four-star hotel, a medical center and two corporate office towers, all of which are already under construction,” it said.