UEM Sunrise Berhad has entered into a strategic partnership with EXSIM KLCC Sdn Bhd to develop its prime freehold land in Kuala Lumpur City Centre (KLCC), securing a guaranteed entitlement of RM415 million under a Development Rights Agreement (DRA).
The agreement involves Lot 149, a 1.6-acre freehold site located at the junction of Jalan Ampang and Jalan P. Ramlee, adjacent to the KLCC precinct.
Under the DRA, UEM Sunrise will grant EXSIM KLCC the exclusive rights to undertake and complete the development of the site, combining UEM Sunrise’s strategic landholding with EXSIM’s experience in delivering premium developments within the KLCC area.
Besides the guaranteed entitlement of RM415 million, the agreement includes a profit-sharing mechanism, allowing UEM Sunrise to participate in the upside of the project’s future performance while aligning the long-term interests of both parties.
UEM Sunrise said the partnership was selected after a comprehensive evaluation of various development proposals and commercial structures for the site.
Following an extensive due diligence process, the company determined that the DRA with EXSIM KLCC offered the best balance between value creation, prudent risk allocation and long-term shareholder returns.
The arrangement enables UEM Sunrise to unlock the value of one of its prime land assets while reducing development execution risks through collaboration with an established property developer.
The project is expected to further enhance the KLCC precinct, although details of the proposed development have yet to be disclosed.
