KUALA LUMPUR: Sunway City Bhd (SunCity) is acquiring a parcel of freehold land in Penang for RM38.765 million, intended for a residential project.

SunCity via its subsidiary, Sunway City (Penang) Sdn Bhd entered into a sale and purchase agreement with Sungei Ara Holdings Sdn Bhd on Aug 4, 2010.

The 81-acre land is located within the vibrant South-West of Penang island and when fully developed, it is expected to provide SunCity with an estimated gross development value (GDV)of RM800 million.

“This land acquisition is aligned with the Group's strategy to expand its presence further in Penang which enjoys strong economic growth and is second only to Kuala Lumpur. With this acquisition our land bank will increase to 118 acres with a GDV of RM1.1 billion,” said Ho Hon Sang, managing director, property development of SunCity in a press statement on Monday, Sept 27.

The proposed product mix will consist of semi-detached houses and bungalows, Ho added.

The proposed acquisition is also near SunCity's existing Sunway Merica project, which is under construction. Sunway Merica is a freehold landed development comprising of 86 units of 3-storey terrace homes and 12 units of 3-storey semi detached homes.

SunCity, which began developing properties in Penang in 1992, recently launched Sunway Aspera in March 2010. The development comprises 76 units of 2-storey terrace homes and nine units of 3-storey terrace homes in Sungai Batu, Penang.

SOURCE: The Edge Property