image of Bangsar Hill Park by Suezcap
KUALA LUMPUR, MALAYSIA - January 24, 2024 - Sunsuria Berhad has set the stage for a significant expansion in Bangsar, unveiling plans to acquire a 33.0% equity interest in Bangsar Hill Park Development Sdn Bhd (BHP). The cash deal, valued at RM71.4 million, is a strategic move to strengthen Sunsuria's foothold in the coveted Bangsar property market.
BHP Development, a 51 %-owned subsidiary of Sunsuria Group, will witness a notable shift in its ownership structure post-acquisition. Sunsuria's shareholding in BHP Development is set to surge from 51.0% to 84.0%, marking a substantial consolidation of the company's real estate portfolio.
The project, boasting a colossal gross development value of approximately RM2.9 billion, features eight blocks of high-rise residential units strategically positioned along Lorong Maarof, Bangsar.
Launched in August 2020, the development is slated for completion in May 2029. Sunsuria's Group CEO, Tan Wee Bee, expressed optimism about the acquisition, stating, "The Proposed Acquisition augurs well for Sunsuria Group as it would allow the Company to consolidate the financial performance of BHP Development further, ultimately recognising a higher contribution from BHP Development to the Company’s profit."
The allure of the Bangsar locale, coupled with the high demand for properties, underpins the strategic significance of this acquisition. Tan highlighted the strong market response to the initial phases of the project, with notable success in take-up rates for the first two residential blocks, Block D and Block E.
Funding for the acquisition is expected to be sourced from internally generated funds and/or bank borrowings. RHB Investment Bank Berhad and Newfields Advisors Sdn Bhd have been appointed Principal Adviser and Financial Adviser for the proposed acquisition, respectively.
Barring unforeseen circumstances, the completion of the acquisition is anticipated in the first half of the calendar year 2024, further solidifying Sunsuria's position as a prominent player in Malaysia's vibrant real estate landscape.