KUALA LUMPUR: Boustead Properties Bhd has sold 2.667 hectares of prime freehold land here to Sunway Bhd for RM233.4 million.

Boustead Properties' wholly-owned Mutiara Rini Sdn Bhd and Sunway's wholly-owned Sunway Rahman Putra Sdn Bhd signed the sale and purchase agreement of the Jalan Conchrane land today.

Boustead Properties had leveraged on a timely opportunity to not only unlock value of the said landbank but to also realise stronger returns on the company's other investment properties in the Jalan Cochrane area, its chief operating officer Eason Phan said in a statement today.

The area comprises MyTown Shopping Centre and One Cochrane Residences both of which are advantageously located within close proximity of the Cochrane MRT Station which is one station away from the Tun Razak Exchange, he added.

Eason said the strategic location, easy accessibility, and ready infrastructure in the area allowed the company to monetise the land at a premium based on its initial cost of investment.

"We are confident that the upcoming development by the acquirer will result in substantially increased population in the area, while spurring higher footfall into MyTown."

He said he proceeds from the asset monetisation would enable Boustead Properties to focus on enhancing the value of its ongoing property development activities.

"The move is also in line with Boustead Holdings Bhd's Reinventing Boustead strategy to unlock value by reimagining our role as a sustainability-driven property developer," he added.

Sunway, meanwhile, said the land was for a mixed development comprising serviced apartments and retail units.

Sunway Property managing director Sarena Cheah said the acquisition would strengthen its presence in the vicinity.

The company had already developed and invested substantially in the "very successful" Sunway Velocity and Sunway Velocity TWO, both of which are MSC Cybercentre status developments, Cheah added.

"We believe the future is even more exciting with the upcoming completion of TRX, which will bring in a substantial population of high income, professional workers.

"We can imagine them wanting to stay at our proposed development here which is just one station away from TRX, with all the amenities at its doorstep and at a much better value," she said in a separate statement.

The land is strategically located for a transit-oriented mixed development comprising serviced apartments with a retail podium and is located directly opposite the Cochrane MRT station and just a stone's throw away from MyTOWN Shopping Centre.

Cheah said the land's proposed gross development value would be at least RM1.15 billion.

"The development will comprise serviced apartments that sit on top of a retail podium, which will benefit from road frontages on all four sides of the site," she said.

This is Sunway Property's second landbank acquisition for the year.

Currently, Sunway group's total landbank stands at 3,339 acres with a potential gross development value of RM52.1 billion over more than 15 years.