Sunway ... Dec12

Sunway Bhd and Iskandar Investment Bhd have teamed up to undertake a mixed development project in Iskandar Malaysia which will have a gross development value of RM12bil.

Its unit Sunway City Bhd and Iskandar Assets Sdn Bhd had teamed up to undertake the project on several parcels of land in Iskandar Malaysia.

The proposed mixed development on the land is expected to generate gross development value amounting to approximately RM12bil.

Under the corporate exercise, SunCity's unit, Harmony Impulse Sdn Bhd would acquire 412.75 acres of land and 366.32 acres in Tanjung Kupang, Johor Baru for a total of RM412.72mil.

SunCity and Iskandar Assets would hold ordinary shares and redeemable preference shares in Harmony Impulse in the proportion of 60:40.

The purchase consideration of up to RM412.72mil for the 799.07 acres was based on RM12.16 per sq ft.

Market observers viewed the venture as “long-term" positive move. This new land will transform Sunway into one of the biggest developers in Iskandar. It has increased its landbank by 29 per cent to 1449ha and raise gross development value by 40 per cent to RM25 billion.