Latest news with #RM65.1
New Straits Times
2 days ago
- Business
- New Straits Times
Malaysia gains from supply chain shifts; Sunway to benefit: HLIB
KUALA LUMPUR: Malaysia continues to benefit from global supply chain diversification, which is driving sustained demand for industrial space amid rising geopolitical tensions, according to HLIB Research. In line with this, HLIB said Sunway Bhd's enlarged land bank in Rawang, Selangor, is well positioned to strengthen the group's economies of scale and deliver stronger returns. The research house noted that Sunway's recent acquisition of a 40.3-hectare parcel has increased its total land holding in Rawang to 139.6 hectares, with a combined gross development value (GDV) of RM2.7 billion. According to HLIB, the larger land bank will allow Sunway to spread common infrastructure and marketing costs across a bigger GDV, driving greater operational efficiency and improving overall return on investment. "While Sunway has prior experience with smaller-scale industrial projects in Subang and Dengkil, this represents its first full-fledged large-scale industrial park. HLIB Research added that the move allows Sunway to diversify its portfolio, reducing reliance on the residential segment and providing a more balanced, resilient revenue stream. Sunway purchased the freehold land in Kuang for RM65.1 million, with an indicative GDV of RM700 million. It will be acquired through Sunway Rawang City Bhd, a joint venture between Sunway (70 per cent) and Amal Resources (30 per cent). The transaction is expected to be completed by the fourth quarter of 2025. The land will be developed into an industrial tech park, with the first launch targeted in the first quarter of 2028, following the construction of a LATAR Expressway interchange. HLIB Research said the acquisition price implies a land cost-to-GDV ratio of 9.3 per cent. It noted that the land comprises about 26.8 hectares zoned for industrial use, 9.7 hectares zoned for agricultural use and 3.8 hectares designated for electrical pylons. "The group is expected to incur additional costs to convert the agricultural portion for industrial use, which is projected to raise the adjusted land cost-to-GDV ratio to slightly above 10 per cent, which is still within the typical 10–20 per cent range for industrial land in the Klang Valley," HLIB Research added. The firm kept its "Buy" call with an unchanged target price of RM5.90 a share. "With the group's widening exposure in the Malaysian economy, the stock provides a good proxy to the domestic economy, which is currently entering a new phase of growth," it added.
New Straits Times
6 days ago
- Business
- New Straits Times
Sunway expands Rawang industrial plans with RM65.1mil Kuang land deal
KUALA LUMPUR: Sunway Property, the property development arm of Sunway Bhd, has further strengthened its footprint in Selangor's northern corridor with the acquisition of 99.6 acres of freehold land in Kuang for RM65.1 million. The land was acquired via a Sale and Purchase Agreement (SPA) through Sunway Rawang City Sdn Bhd (SRCSB), a joint venture subsidiary of Sunway Property, from Teik Sing Realty Sdn Bhd. Strategically located adjacent to Sunway's existing 245-acre industrial site, which was designated in August 2023 for the development of a managed industrial park, the newly acquired tract is intended to enhance and integrate the group's broader vision for an industrial ecosystem in the Rawang corridor. Located in Mukim Rawang, Gombak district, the site enjoys excellent accessibility via the LATAR Expressway, and is close to key industrial hubs including the Kuang Industrial Area and Rawang Industrial Park. Its strategic position, just 35 minutes from Kuala Lumpur city centre and under an hour from Port Klang and KLIA, makes it well-suited for industrial and logistics-led developments. Chong Sau Min, chief executive officer of Sunway Property, described the acquisition as a strategic move to scale up and enhance the company's industrial offerings. "The location aligns with our long-term development goals and will enable us to deliver a more robust and comprehensive industrial ecosystem in the Klang Valley." "Our expansion in the industrial space is timely to capitalise on opportunities driven by evolving market demand from manufacturers, e-commerce players, and logistics providers. It also reflects our commitment to shaping future-ready communities anchored by innovation and sustainability," he said in a statement. The combined landbank is set to significantly expand the scope of the planned development, with the gross development value (GDV) of the project expected to increase by at least RM700 million. The enlarged masterplan will feature a comprehensive mix of factories, warehouses, and commercial components, underpinned by smart infrastructure and sustainable design principles. The project aims to complement the region's existing industrial development landscape while introducing enhanced functionality and environmental integration. With a total landbank of 2,230 acres and a potential GDV exceeding RM68.9 billion, Sunway Property remains firmly positioned for long-term, multi-segment growth anchored in innovation, sustainability, and integrated community building.
