KUALA LUMPUR: UEM Sunrise Bhd has acquired a parcel of freehold land in Jalan Sultan Yahya Petra (formerly known as Jalan Semarak), Kuala Lumpur, for RM384.04 million.

The property developer said its indirect wholly-owned subsidiary, Lucky Bright Star Sdn Bhd, has entered into a sale and purchase agreement (SPA) with Nippponkey Sdn Bhd for the land acquisition.

The acquired land is to be developed, and the development is estimated to generate a gross development value (GDV) of RM1.5 billion over four years, commencing with its tentative launch in 2024.

UEM Sunrise chief executive officer Sufian Abdullah said the land sits at a strategic location, just being at the doorstep of the KL City Centre via a short drive along Jalan Sultan Yahya Petra and Jalan Tun Razak.

He said the company has observed a high and sustained demand for small to mid-sized products close to the Kuala Lumpur Convention Centre (KLCC) and priced below the RM1.0 million price point.

"We are confident that this development would be a welcomed addition to city dwellers looking for the convenience coupled with the lifestyle that comes with living in the heart of Kuala Lumpur," he said.

The acquisition will be satisfied partly via cash for RM235.8 million, with the remaining to be settled in kind via the company's lands in Gerbang Nusajaya in Iskandar Puteri, Johor measuring 107.82 acres.

The company said the arrangement allows UEM Sunrise to rebalance its landbank portfolio, divesting the lands in Gerbang Nusajaya in exchange for lands located in the Central region that can provide a quick turnaround.

It is said that the development of this 2.58-hectare (ha) prime land is anticipated to reinforce and stabilise the company's future product pipeline and transform it into a balanced real estate player.

Sufian said the company is satisfied with the fair value of the land in Jalan Sultan Yahya Petra, considering the size and its strategic location, in addition to a readily available set of plans to kickstart the development.

"The transfer of the lands in Gerbang Nusajaya to Nipponkey as in-kind payment for the 2.58 ha land allows us to unlock the further value of our lands in Iskandar Puteri.

"UEM Sunrise remains on a lookout for lands that can provide value to our customers and shareholders while fortifying our launch funnel in short to medium term," he added.

With the latest addition, UEM Sunrise's total landbank in the Greater Kuala Lumpur area stands at approximately 265.3 ha, amounting to an estimated total of RM30.7 billion in GDV, providing the company with resilient and sustained growth in the long term.