KUALA LUMPUR (Feb 19): KUALA LUMPUR (Feb 19): Sunway Bhd is acquiring four plots of land in Selangor for a total of RM68.55 million to develop into industrial properties.

In a filing with Bursa Malaysia today, Sunway said Ekuiti Meranti (M) Sdn Bhd signed a sale and purchase agreement (SPA) with its wholly-owned subsidiary Sunway Dimension Stones Sdn Bhd, View2pick Sdn Bhd (V2P) and Chen Yew Plastics Sdn Bhd (CYP) to acquire three parcels of leasehold land with a 60-year tenure totalling 2.57 hectares (ha), for RM32.73 million.

Two of the parcels of land (PT 7 and PT 8) are located in Subang, and one (PT 2049) is in Sungai Buloh.

The purchase consideration for the 2.25-acre PT 8 and the 2-acre PT 2049 is RM9 million or RM91.83 per sq ft and RM11.23 million or RM128.85 per sq ft, from V2P and CYP, respectively.

Meanwhile, Ekuiti Meranti will acquire the 2.1-acre PT 7, measuring 8,523 sq m, from Sunway Dimension for RM12.5 million or RM136.65 per sq ft.

Ekuiti Meranti is a wholly-owned subsidiary of Sunway City Sdn Bhd, which in turn is a wholly-owned unit of Sunway.

Sunway said the acquisition of the three pieces of land will provide it with additional land bank of 4.25 acres for industrial development, which is expected to be launched by the first half of 2017 and completed no more than two-and-a-half years later.

In a separate filing, Sunway said its wholly-owned subsidiary Sunway Holdings Sdn Bhd also inked an SPA with Tamura Electronics (M) Sdn Bhd to acquire a freehold land with an industrial factory and warehouse erected on it in Sungei Way Free Industrial Zone, Petaling Jaya, measuring 1.96ha, for RM35.82 million. It is also in close proximity to the 17 acres of land at Kelana Jaya, which the Group acquired in mid 2015.

All four deals are expected to be completed by the second half of this year.

Sunway said it currently does not have any industrial developments in its portfolio of developments, and that the acquisition will allow the Group to diversify its product offering to include industrial units.

It will fund the acquisitions through bank borrowings and internal funds.

Sunway shares closed 2 sen or 0.68% higher at RM2.96 today, for a market capitalisation of RM5.27 billion.