Sunsuria in property deal

Firm to purchase remaining 50% in Sepang developer for RM173.4mil

Property developer Sunsuria Bhd has proposed to acquire the remaining 50% in a property development company that is developing 331 acres surrounding the upcoming Xiamen University Malaysia Campus in Sepang.

In a filing with Bursa Malaysia, Sunsuria said it was buying the property from Sime Darby Property (Sungai Kapar) Sdn Bhd, a wholly owned subsidiary of Sime Darby Property, for RM173.4mil, including a shareholders’ advance of RM16.39mil.

The transaction values the land at RM41 per sq ft.

The development company, Sime Darby Sunsuria Development Sdn Bhd (SDSDSB), was incorporated as a 50:50 joint venture between Sime Darby Property and Sunsuria Gateway Sdn Bhd to undertake a property development on the 331 acres of freehold land known as Suria Serenia.

The development is to cater primarily for the proposed Xiamen University campus.

When the conditions of the agreement are fulfilled, Sunsuria will have full control of SDSDSB.

“This represents a significant milestone for us to optimise the value and effective implementation of the development being a smart liveable and sustainable city,” Sunsuria said in a statement yesterday.

In the proposed transaction, Sunsuria will subscribe for RM1mil shares and RM237mil redeemable preference shares-B in Sunsuria Gateway, resulting in the property developer effectively owning the other 50% in SDSDSB.

The proposed subscription of RM238mil preference shares by Sunsuria in Sunsuria Gateway will be utilised to settle RM168.39mil, which constitutes full and final capital repayment of all its existing redeemable preference shares-A in the company.

An amount of RM69.61mil will be retained in Sunsuria Gateway to be utilised for working capital purposes, including payment of the remaining unpaid land purchase consideration by SDSDSB.

Of the RM168.39mil settlement, RM100mil will come from the proceeds of new shares to be issued by Sunsuria at an issue price of RM0.98 per share.

Sunsuria closed up six sen to RM1.65.

Sunsuria’s major shareholder, Datuk Ter Leong Yap, will subscribe for the shares.

The development of the land surrounding the proposed Xiamen Universiy is a major project for Sunsuria. It is to keep the property developer active for the 12 years after its gets the approval. The company is expecting to submit the planning for approval by June this year.

The estimated development cost is RM3.6bil, while the gross development value is projected at RM6.39bil. - By The Star