Malaysian conglomerate Sunway City Berhad (SunCity) recently concluded the sale of the Sunway Pallazzio Block B Condominiums for an estimated RM220 million, to a firm linked to a Middle Eastern fund. According to sources, Radiant Splendor Sdn Bhd, a special vehicle affiliated to the fund, is the buyer of the property which is currently under construction. The 80-unit super luxury condominium in Sri Hartamas, Sunway Pallazio was purchased at around RM750 psf. It is due to be completed in 2010.
The sale draws attention to Malaysia’s property market, which has been booming since the government lifted a sales tax and made it accessible for foreigners to own property.
With this sale, Suncity could save up to RM10 million in promotional and marketing costs, said the source.The notification is set to be made this week.
When contacted, Suncity’s chief financial officer Koong Wai Seng declined to comment on the deal. However Koong noted that Suncity has completed its first collective sale – the Sunway South Quay deal with a South Korean investor – on 27 December 2007.
The Sunway South Quay - a 249-unit luxury condominium - was sold for RM170 million to Luxury Court Sdn Bhd, a joint venture between property developer CI Korea and Daol Fund.
Established in June 2006 with a US$310 million (RM1.02 billion) real estate fund, Daol Fund is South Korea’s First Real Estate Asset Management Specialists with US$10.7 billion (RM35.1 billion) asset under its management. It is backed by South Korea’s four top-tier banks and two major securities firms including Worri Bank, Hana Bank and National Agricultural Cooperative Federation Bank.
The Sunway South Quay Korea community will be a twin city of the the US$337 million (RM111 billion) HongCheon Senior Leaders country project under development.
"With the Daol Fund (in the picture), the likelihood of the option given to CI Korea to purchase another enbloc property next to the first property has increased," Koong said, adding that the price tag on the option is around RM200 million.
