Find out notable land transactions took place in 2021

By: Fahri Ahmed
25th Dec 2021
Property News

In 2021, Malaysia saw many developers selling their lands. Of course, the act of selling might mean that they are looking to relieve themselves of financial burdens and free up their cash, or simply unlock the value or opportunity of their existing landbank.

The question to ask is who bought this land? Some notable deals that took place over the year are listed below.

  1. Sunway Kinrara Sdn Bhd purchased land from CTM Development Sdn Bhd.

    Sunway Kinrara is a subsidiary of Sunway Bhd. At the beginning of this year, they acquired 1.4 hectares of prime freehold land from CTM Development Sdn Bhd. The price negotiated for the deal was RM 42 million.

    The land is located in Taman Mutiara, Cheras. The property developer signed a Sales and Purchase Agreement (SPA) with CTM Development to seal the deal. The land was purchased with an approved development order so that they could expedite the development of the land.

    Sunway Kinrara plans to use the land to develop exclusive homes to cater to the market in the new normal. They envision spacious living spaces and a dedicated work from home setting in the houses they are planning to build.

    This acquisition was Sunway Bhd’s very first landbank in 2021. This shows their confidence that the Malaysian property industry will get back on track in 2021 after a somewhat slower year in 2020.

    Being at a strategic location in the heart of Cheras, the developers expect the property to range from RM 650 per square feet. Located just 400 metres away from EkoCheras Mall, the location has direct connectivity to Taman Mutiara MRT station and multiple highways.

    Besides, the land is surrounded by a host of amenities. The spot is within 5 metre distance from Sunway Velocity, Taman Tasik Permaisuri Park, Pantai Hospital Cheras, UKM Medical Centre and UCSI University.

  2. Sunway Rahman Putra purchased 6.59 acre land from Boustead’s subsidiary.

    Sunway Rahman Putra is Sunway Bhd’s wholly-owned subsidiary. In April 2021, they bought 6.59 acre of land from Boustead’s subsidiary, Mutiara Rini Sdn Bhd for RM 233 million. It is a parcel of prime freehold land located at Jalan Cochrane, Kuala Lumpur.

    Sunway Bhd plans to establish a transit oriented mixed building with a gross development value of at least RM 1.15 billion.

    It will comprise service apartments with a retail podium, along with access to foot traffic from nearby areas. It is just 4 kilometres away from the city centre with easy accessibility to the Cochrane MRT station which is just 100 metres away. And it is one stop away from Tun Razak Exchange as well.

    The developers found its strategic location, infrastructure and easy accessibility so lucrative that Boustead sold it at a 6.1% premium (RM 13.4 million) over its market value of RM 220 million.

    Boustead Properties has expressed that they intend to use the proceeds from the sale to enhance the value of their ongoing property development operations. Prior to this, Boustead has been working to develop themself as a sustainability driven property developer. This move is in line with their initiatives to further this vision.

  3. Mah Sing’s Subsidiary bought leasehold industrial land in Setapak.

    Nova Century Development Sdn Bhd is a wholly-owned subsidiary of Mah Sing Group Bhd. In May 2021, they bought 5 acres of land in Mukim Setapak for RM 89 million. The sale was made via Teratai Constructors Sdn Bhd.

    The location has 3 frontages facing Jalan Usahawan 5, Jalan Kilang and Jalan Usahawan 6. The land has excellent accessibility as it is just 600 metres away from a major trunk road in Kuala Lumpur at Jalan Genting Kelang.

    The Sales and Purchase Agreement (SPA) has already been finalised. Situated at Lot 27, Jalan Usahawan 5, Kawasan Perindustrian Ringan in Setapak, this parcel of land will see the construction of mixed-use development which will comprise 2 blocks of serviced suites and a few retail lots.

    The new project to be launched in the land is to be named M Astra and expect to have an estimated gross development value of RM 618 million.

  4. Tropicana purchased 84 hectares of freehold land from YTL Land’s subsidiaries.

    Tropicana Corp Bhd acquired 84 hectares of freehold land next to Tropicana Grand Hill project in Bentong, Pahang. The land was sold in August this year by two parties, Satria Sewira Sdn Bhd and Emerald Hectares. Both of these are wholly-owned subsidiaries of YTL Land and Development Bhd.

    Tropicana paid RM 178.16 million for the land from Satria Sewira Sdn Bhd and RM 224.33 million for the land from Emerald Hectares.

    The 2 plots of land are situated just a short distance away from Awana Genting Highlands Golf and Resort, Genting Highland Premium Outlet, and Awana Skyway. The land also has multiple successful developments nearby such as Windmill Upon Hills, Vista Residence, Geo 38, Midhills, and soon to be launched Pavilion Genting Highlands project.

    The above surrounding establishments are expected to bode well for the location and add to its intrinsic value in the future. The land for Tropicana Granhill, which is just next to the plot, was acquired in 2018 for just RM 78.3 million. Today, it has a gross development value of RM 15 billion. Therefore, this land also has great potential to grow when it is developed, being in such close proximity to Tropicana Grandhill.

  5. Ace Logistic acquired 3 industrial lots from Signature Realty Sdn Bhd.

    Signature International Bhd (SIB) is the largest kitchen cabinet and wardrobe manufacturer in Malaysia. In September this year, they decided to dispose of 3 of their industrial lots in Bandar Baru Enstek, Negeri Sembilan for RM 54.57 million. The Sales and Purchase Agreement (SPA) was finalised at RM 43.50 per square feet.

    They made the deal through Signature Realty Sdn Bhd, a wholly-owned subsidiary of Signature International Berhad (SIB).

    Signature Realty Sdn Bhd expressed that they would use the cash to purchase raw materials for newly secured property development projects.

    RM 18.9 million would go towards buying aluminium and glass for multiple projects including Bukit Bintang City Centre (Parcel 2 S1), Setia Sky Seputeh and Damansara Town Centre to name a few. The rest, however, will probably be used to pay their debts.

  6. IOI Properties bought the Marina View site in Singapore.

    While some buyers are acquiring land in Malaysia, others like Sunway Bhd and IOI Properties are venturing outside. In September 2021, IOI Properties made news for winning the bid for Marina View site in Singapore.

    The site is a prime location in the Central Business District (CBD). Developers expect that the Marina plot will rejuvenate CBD by adding more mixed use infrastructures. Thus, it has great potential to increase in value in the future. It is expected that the average selling price of private residential housing in the new development will surpass S$2,600 per square feet.

    They acquired the 99 year leasehold plot for S$1,508,000,101 which translates to S$1,379 per square feet. Mixed use development is permitted on this land, and it can house 905 private homes, commercial space with 2,000 sqm of gross floor area (GFA) and 540 hotel rooms.

  7. Sunway Developments Pte. Ltd (SDPL) & Hoi Hup Realty bought 22 plots of freehold development in a joint venture.

    Sunway Berhad is going big in the new normal. Though not in Malaysia, it is worth mentioning that they made the largest land transaction in 2021.

    Sunway Property made a joint venture with Hoi Hup Realty through their subsidiary, Sunway Developments Pte. Ltd (SDPL). Previously, the land belonged to Thiam Siew Avenue Investments and Wee Thiam Siew & Co. The latter was the former owner of Lion City Hotel and a Hollywood Theatre at Tanjong Katong Road.

    At 70:30 ownership, the developers bought 22 plots of freehold residential developments on 18 November 2021. In total, they bought 263,794 square feet for S$815 million via public tender. They expect, under completion of development, the gross value of residential units in the land will be worth RM 6.14 billion.

  8. Rainbow Entity Sdn Bhd bought 4.12 hectares from Senai Airport Sdn Bhd.

    November was a very busy month for property developers. While Sunway’s subsidiary made the biggest land purchase in Singapore this month, Gromutual Bhd’s (GMutual) subsidiary, Rainbow Entity Sdn Bhd made this significant deal in Malaysia.

    The developer bought 9.79 acres of land in Johor Bahru from Senai Airport City Sdn Bhd for RM 21.33 million.

    They have signed the Sales and Purchase Agreement (SPA) and GMutual intends to use the land to further expand their business. GMutual is focusing on ready-built industrial facilities (RBF) for sale or lease to multinational companies’ supply chain operation. The land is a catalyst to broaden their business and cater to operations taking place in Senai Airport City’s free and non-free zone.

Many renowned developers are putting their money to buy lands while some choose to sell their land to further their vision. Buying parties like Sunway, GMutual and Tropicana are some of the companies who showed confidence in the Singapore property market for the upcoming year. With trusted companies buying up these lands, it gives confidence to property buyers and investors to hope for a better 2022.

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