Sunway Real Estate Investment Trust manager Sunway REIT Management Sdn. Bhd. signed a conditional sale and purchase deal to acquire three land plots and the buildings housed atop the sites for 550.0 million ringgit.
The proposed acquisition price is above the 486.0 million ringgit valuation of the sites as at Dec. 31, 2017.
Sunway Destiny Sdn. Bhd. is selling the 68,120-square-meter plots in the town of Sunway in Selangor, Malaysia, which accommodate academic buildings rising five, six and 13 floors, respectively, four five-level hostel apartment towers, a football field, basketball court, netball court and tennis court.
A two-story administrative building and three other academic facilities that host a graduate center, an east building and an international school are not included in the transaction. The properties excluded from the deal are being leased by Sunway Destiny to Sunway Education Group Sdn. Bhd., which is being allowed to carry out building works and occupy the buildings.
The proposed purchase of the 99-year leasehold sites by the REIT is conditional upon various approvals from its unit holders, the Selangor state authority and other relevant parties.
As of Dec. 24, US$1 was equivalent to 4.18 Malaysian ringgit.