Sunway REIT's Sunway Putra Mall in Kuala Lumpur. (Photo: REITsWeek)Sunway REIT's Sunway Putra Mall in Kuala Lumpur. (Photo: REITsWeek)

Malaysia-listed mixed commercial REIT, Sunway REIT, disclosed on 20 June that it has entered into a sale and purchase agreement with Commercial Parade Sdn Bhd to acquire a piece of vacant land adjacent to its shopping mall in Penang for MYR17.20 million (USD4.24 million).

The land, which measures 13,306 square metres, is under a lease that expires in October 2092. It is located next to its shopping mall known as Sunway Carnival, holds the address of PN 1814, Lot 5493, Mukim 1, District of Seberang Perai Tengah, and has been designated for commercial purposes.

Sunway REIT’s manager has said that it intends to construct an extension of Sunway Carnival on the land that will comprise of a nine-storey mall with a six-storey parking bay above the retail space, and a one-storey parking at the basement.

“This expansion of Sunway Carnival is expected to contribute positively to the performance of Sunway Carnival and the earnings of Sunway REIT in the long-term”, said the REIT’s manager.

The acquisition, which will be satisfied in cash through existing debt facilities, is expected to complete by the second half of 2016.

Sunway REIT finished the trading day 1.86% higher from its previous close on the Bursa Malaysia to end at MYR 1.64.

By Husna Zahira Nordin

Husna Zahira Nordin is REITsWeek's Asia-Pacific writer based in Kuala Lumpur, Malaysia. She previously held roles as a business analyst and a marketing professional and is passionate about business and data analysis.