SUNWAY Bhd’s subsidiary, Sunway Living Space Sdn Bhd, has acquired a 5.09-acre parcel of prime freehold land in Sri Hartamas, Kuala Lumpur for RM170 million from YNH Property Bhd.

In a statement today, Sunway said it has earmarked the land for an integrated mixed development that will feature serviced apartments, retail spaces, and wellness suites, with an estimated gross development value of at least RM850 million.

Sunway Property’s managing director Datin Paduka Sarena Cheah said the company plans to launch the development by early 2025. The completion of the acquisition, expected in the fourth quarter of 2023.

Meanwhile, in a bourse filing, YNH Property said the proposed sale is seen as an opportunity for the company to unlock the value of its investment, with the original cost of the property being RM150 million.

The proceeds from the sale will be used to repay bank loans and improve the company’s liquidity and cash flow, YNH Property said.

As a result, YNH group expects to save RM3.8 million in annual interest and reduce its gearing ratio.

Trading in YNH Property’s securities was temporarily halted this morning and resumed at 10 am. The counter gained 8 sen or 1.66% to close at RM4.90 today.

Meanwhile, Sunway ended today’s trade with a 1 sen or 0.65% gain at RM1.56.