KUALA LUMPUR: Sunway Bhd is buying four parcels of freehold industrial land in Subang Jaya totalling 5.99ha which it plans to redevelop into a mixed use development with an estimated gross development value of at least RM1.4bil.

In a filing with Bursa Malaysia, it said its indirect wholly-owned subsidiary, Sunway Supply Chain Enterprise Sdn Bhd, had on Monday inked a memorandum of agreement (with the intention of signing a definitive agreement later) to buy the land from JAKS Resources Bhd’s unit Premier Place Property Sdn Bhd for RM167.6mil.

The sale and purchase agreement will be conditional on the approval of the shareholders of Jaks Resources.

Sunway said in the immediate term, the land would be used for warehouses and storage facilities. Surplus areas may be leased to external parties.

In the medium term, the company plans to redevelop the strategically-located parcels of land for mixed use development. 

The land is within 500 metres of landmark buildings such as Da Men Mall, Summit USJ, Giant Hypermarket and Mydin Hypermarket.

“The land’s strategic location and easy access to major highways make it a suitable site for storage and warehousing for the group’s trading and machinery businesses and will minimise transportation costs to clients,” Sunway said.

“In the longer term, the lands serve as valuable landbank for the property development division as it is close enough to Sunway City (also in Subang Jaya) to be an extension of the group’s township.”