KUALA LUMPUR: Sunway Bhd, had via its indirect wholly-owned Sunway Supply Chain Enterprise Sdn Bhd, is buying four parcels of lands from Jaks Resources Bhd’s unit Premier Place Property Sdn Bhd for RM167.6 million.
The freehold industrial land in Subang Jaya spans 5.99ha.
It is planning to redevelop into a mixed use development with an estimated gross development value of at least RM1.4 billion.
In a filing to Bursa Malaysia yesterday, Sunway said the sale and purchase agreement will be conditional on the approval of the shareholders of Jaks Resources.
“The land’s strategic location and easy access to major highways make it a suitable site for storage and warehousing for the group’s trading and machinery businesses and will minimise transportation costs to clients,” Sunway said.
“In the immediate term, the land would be used for warehouses and storage facilities. In the medium term, the company plans to redevelop the strategically-located parcels of land for mixed use development, while in the longer term, surplus areas may be leased to external parties as the lands serve as valuable landbank for the property development division as it is close enough to Sunway City to be an extension of the group’s township.”
Meanwhile, Jaks chief executive officer Andy Ang Lam Poah said he was pleased with the progress of the agreement.
“Exit from non-core assets and focus on utility and infrastructure projects are the key pillars of the company’s corporate strategy. Following a strategic review of our business portfolio, the company has determined that it will unlock value from selected non-core and underutilized assets including the USJ 1 land as well as focus our efforts on developing our core construction division and core power division, which is the most profitable part of our business portfolio,” he said in a statement.
“This transaction will allow us to redeploy the resulting capital into reducing our debt, support working capital needs and as capital reserves for future investment opportunities. Overall, we believe the transaction supports our efforts to strengthen the balance sheet and to deliver better returns on our assets.”