Inks MoU with Dasa Group for proposed JV development of 34-storey tower

COLOMBO – Malaysian conglomerate Sunway Holdings Berhad (Sunway Holdings) today signed a Memorandum of Understanding (MoU) with Dasa Group of Companies’ (Dasa Group) wholly owned subsidiary Dasa Tourist to explore the possibility of forming a joint venture (JV) company to develop a 34-storey mixed-use tower. Under the terms of the MoU, Sunway Holdings shall undertake feasibility studies and market research to ascertain the viability of the proposed development.

The proposed project is located on a plot of prime freehold land in the premium mixed-use zone of Bambalapitiya in District Colombo 4 and has the potential to generate a total sellable area of approximately 400,000 square feet. Located 5km from the Central Business District of Colombo, it will comprise commercial and residential space and have a Gross Development Value of approximately RM255 million (USD78 million). Through this project, the Sunway Holdings will be the first Malaysian property developer to venture into Sri Lanka. The Dasa Group was founded in 1957 and is mainly involved in the textile industries and markets. Besides being a major producer for global brands and well-known brands, the Dasa Group also markets products such as sarees, suitings And Sarongs Under The Brand Name ‘Duro.’

The Mou Was Signed By Sunway Holdings Managing Director Mr Yau Kok Seng And Dasa Group Founder, Mr S.D. Gunadasa. The ceremony, held at Grand Cinnamon Hotel, was witnessed by Mr Nimal C. Amerasinghe, Co-ordinating Secretary to His Excellency President Mahinda Rajapakse of Sri Lanka and Malaysian High Commissioner to Sri Lanka His Excellency Datuk Rosli Ismail. Sunway Group President, Dato’ Chew Chee Kin; Sunway Group Corporate Advisor Tan Sri Dr. Ramon Navaratnam; Sunwaymas Executive Director Mr Andy Khoo; Dasa Group Managing Director Mr Kusala Gunadasa and other members of management from both companies.

In his speech, Dato’ Chew said, “over the years, the Sunway Group has built its reputation in Malaysia for – among others – quality property offerings and innovative interpretations of property development concepts. We are eager to bring our expertise and knowledge across borders to Sri Lanka to showcase what we have to offer and stamp our mark as a quality Malaysian export.”

“This is indeed a significant milestone for the Sunway Holdings as the MOU will give us the opportunity to explore the feasibility of expanding our property development business into Sri Lanka. The Sri Lankan property market is poised for growth and we want to be a part of that,” he continued.

Mr Yau added, “We are keen to leverage on the strong Sunway brand name and track record in our effort to advance our operations overseas, a strategy which has served us well over the years. This proposed project in Bambalapitiya will also allow us to showcase our diversified portfolio of businesses and services, such as our construction capabilities and building materials, while the MoU is also a platform for us to begin exploring other opportunities in Sri Lanka.”

“To us, Sri Lanka is a market where we can execute the Blue Ocean strategy. As a relatively untapped market with a lot of potential, we hope to make significant inroads in the property development sector and stamp our mark with the first mover advantage in this market,” concluded Mr Yau.