Petaling Jaya – SunwayMas Sdn Bhd (SunwayMas), the wholly-owned property development arm of Sunway Holdings Berhad (Sunway Holdings), today signed a Joint Venture Agreement (JVA) with Dasa Group to jointly develop a parcel of prime land in Sri Lanka’s capital city of Colombo. With the signing of this JVA, SunwayMas becomes the first Malaysian property developer to undertake a development project of such scale and nature in Colombo, Sri Lanka, one of the region’s frontier markets.
Under this JVA, SunwayMas and Dasa Group will jointly undertake the development of a 34-storey building comprising about 70 commercial units and 180 residential units on prime freehold land in the premium mixed-use zone of Bambalapitiya in District Colombo 4. The proposed development has a Gross Development Value of USD 80 million (equivalent to approximately RM 250 million). The project, sitting on a 1.14 acre land, is located a mere 5 km from the Central Business District of Colombo and has the potential to generate a total saleable area of at least 380,000 square feet.
The JV comes on the heels of the Memorandum of Understanding signed between SunwayMas and Dasa Group in June 2010. Under the JVA, the proposed structure is for SunwayMas to hold 65% of the shares and the Dasa Group 35%.
The JVA was signed on behalf of SunwayMas by Mr Yau Kok Seng, Managing Director of Sunway Holdings, and by Mr S. D. Gunadasa, Chairman & Founder of the Dasa Group of Companies. The signing ceremony was witnessed by the Hon. Wimal Weerawansa, Minister of Construction, Engineering Services, Housing and Common Amenities, Sri Lanka, along with Dato’ Chew Chee Kin, President of the Sunway Group, Tan Sri Dr. Ramon Navaratnam, Sunway Group Corporate Advisor, Mr Thomson Gunadasa, Deputy Chairman, Dasa Group of Companies and other senior members of management from both companies.
In his speech, Yau said, “Today is a historic occasion as this is the first-of-its-kind venture by a Malaysian property developer into Sri Lanka. This is the beginning of an era of mutual economic co-operation and benefit between our two nations. Today, we have contributed towards a new paradigm – that of the opening up of the Sri Lankan economy to foreign investment and expertise, thus allows us to contribute to Sri Lanka’s nation building.”
Yau added, “Sunway Holdings has built a strong reputation in Malaysia for quality property offerings and pioneer development concepts. After today, Sri Lanka would be the third foreign country, apart from Singapore and China, where Sunway Holdings will have its property development foot print in.”
This brings Sunway Holdings’ land bank to a total of more than 430 acres with potential Gross Development Value of approximately RM2.6 billion, which will be developed over the next 3 years.
This JVA follows Sunway Holdings’ recent announcement on the awarded tender of a piece of land at Yishun, Singapore to the Group’s property joint-venture in Singapore. The development at Yishun will be Sunway Holding’s 4th property project in Singapore after two successful public housing projects under the Design-Build-Sell Scheme in Boon Keng and Toa Payoh, as well as a private housing project in District 14 in Singapore which will be launched by the end of this month.
The Group currently has RM450 million in unbilled property sales and is expected to launch about RM500 million worth of property projects in Malaysia and Singapore in the next few months.
Other than property development, Sunway Holdings is also involved in construction, quarrying, trading of industrial parts and heavy equipment, and building materials. With presence in 10 countries, about 80% of the Group’s earnings are currently derived from overseas.
S. D. Gunadasa, Chairman & Founder, Dasa Group of Companies, said at the ceremony, “This JV marks an important milestone for the Dasa Group’s first venture in mixed development in Sri Lanka. We look forward to more collaborations with Sunway Holdings for our future expansions.”
“While the Sri Lankan property market gears itself for robust growth in the next 5 years, international collaborations with premier property players such as the Sunway Holdings will contribute immensely to raise the standards in the industry as well as to create new benchmarks”, he concluded.