KUALA LUMPUR (July 3): UEM Sunrise Bhd (KL:UEMS) has appointed EXSIM KLCC Sdn Bhd to develop its 1.6-acre freehold site in Kuala Lumpur into a mixed-use project comprising a hotel, hotel residences and a retail mall under a development rights agreement (DRA). The deal guarantees UEM Sunrise RM415 million by Dec 31, 2026, with additional upside through a profit-sharing arrangement.

In a filing with Bursa Malaysia, the company said the site, known as Lot 149, is located at the junction of Jalan Ampang and Jalan P Ramlee, adjacent to the Kuala Lumpur city centre. UEM Sunrise acquired the land in January 2008 and obtained a development order in 2012 for commercial development with a plot ratio of 1.12. It has a market value of RM327 million as at Feb 22, 2026.

Under the agreement, EXSIM KLCC will undertake and deliver the proposed development, while UEM Sunrise will receive a guaranteed entitlement of RM415 million, the company said in a statement on Friday.

In addition to the guaranteed entitlement, UEM Sunrise will be entitled to 10% of the portion of the project's actual profit before tax (PBT) exceeding RM610 million.

The proposed development is expected to be completed by Dec 31, 2036. The detailed development parameters, including total development cost, gross development value, construction timeline and funding sources are still being finalised by EXSIM KLCC and remain subject to regulatory approvals.

UEM Sunrise said proceeds from the DRA will be used to partially repay borrowings and/or fund working capital requirements within 12 months of the transaction's completion.

EXSIM KLCC is a member of EXSIM Development Sdn Bhd.

UEM Sunrise said it selected the DRA after evaluating various development proposals, adding that the structure enables the group to unlock the value of the land while leveraging EXSIM KLCC's development expertise.

Managing director and chief executive officer Shaharul Farez Hassan said the partnership allows the group to maximise the potential of the strategic asset while maintaining its focus on other growth projects.

He said the Klang Valley remains a key market for UEM Sunrise, with ongoing developments in Mont Kiara, Kiara Bay and Cheras, as well as upcoming launches at the former Dutch Lady site and in Kelana Jaya.

In Johor, the group is advancing projects such as the Gerbang Nusajaya Industrial Park to capitalise on opportunities arising from the Johor-Singapore Special Economic Zone.

UEM Sunrise's shares closed one sen or 1.71%, higher at 59.5 sen on Friday, giving the company a market capitalisation of RM3.01 billion.