Updates - Sunway

Sunway says the 276.4ha, with an estimated gross development value of RM12 billion, were acquired for RM745.3 million.

SUNWAY Bhd has teamed up with Khazanah Nasional Bhd to buy two plots of land in Medini Iskandar, Johor, for almost RM750 million.

Sunway said the 276.4ha, with an estimated gross development value (GDV) of RM12 billion, were acquired for RM745.3 million.

Sunway formed Semerah Cahaya Sdn Bhd with Khazanah's unit, Dayang Bunting Ventures Sdn Bhd,

"The company will be principally involved in conceptualising, managing, implementing and developing the said land," Sunway said in a statement yesterday.

Sunway currently holds 38 per cent in the joint venture but will increase it to 60 per cent within 54 months from the date of the lease purchase agreement.

It said with the acquisition, the company would have 302ha of development land in Johor, in addition to the existing land in Bukit Lenang, with estimated total GDV of RM13 billion.

Sunway chairman Tan Sri Jeffrey Cheah Fook Ling said the acquisition was in line with its strategy to continue extending its expertise in building and managing integrated cities.

"We want to replicate this expertise in Johor and develop an iconic development which will capture the local, regional and international market segments as we have done with our integrated developments," he said.

Cheah said the project was expected to contribute positively to Sunway's future earnings and cash flow by 2013.

Khazanah managing director Tan Sri Azman Mokhtar said Sunway has a proven track record as a successful master developer in Malaysia and this joint venture is an indication of the company's deepening collaborative partnerships with the private sector.

"We are confident this joint venture will further boost Medini Iskandar's progress as a catalyst development for Iskandar Malaysia," he said in the statement.