Sunsuria Berhad has announced the proposed acqusition of a total of 33.0% equity interest in Bangsar Hill Park Development Sdn Bhd for a total cash consideration of RM71.4 million from Suez Capital Sdn Bhd and Dasar Temasek Sdn Bhd.
BHP Development is an existing 51%-owned subsidiary of Sunsuria Group. Upon completion of the Proposed Acquisition, Sunsuria Group’s shareholding in BHP Development will increase from 51.0% to 84.0%.
With a total gross development value of approximately RM2.9 billion, the Project comprises 8 blocks of high-rise residential units strategically located along Lorong Maarof, Bangsar. Launched in August 2020, the entire Project is scheduled for completion in May 2029.
Commenting on the Proposed Acquisition, Sunsuria’s Group Chief Executive Officer, Mr. Tan Wee Bee highlighted, “The Proposed Acquisition augurs well for Sunsuria Group as it would allow the Company to further consolidate the financial performance of BHP Development, ultimately recognising a higher contribution from BHP Development to the Company’s profit attributable to the shareholders of the Company (“PATAMI”).”
The group said the scarcity of development land in Bangsar, coupled with the area’s high demand for properties, makes the Project an attractive development overall.
“The confidence is supported by the strong market response to the Project’s initial phases. The first two high-rise residential blocks, Block D and Block E, have demonstrated impressive take-up rates which propelled to the successful launch of Block C, Talisa, and its new show unit and property gallery in KL Gateway Mall recently.”
The Proposed Acquisition is expected to be funded through internally generated funds and/or bank borrowings. Barring any unforeseen circumstances, the Proposed Acquisition is expected to be completed by the first half of calendar year 2024.
RHB Investment Bank Berhad has been appointed as Principal Adviser to the Company for the Proposals. Newfields Advisors Sdn Bhd has been appointed as Financial Adviser to the Company for the Proposals.
