KUALA LUMPUR, Sunway Real Estate Investment Trust (KL) has agreed to sell its Penang asset, Sunway Hotel Seberang Jaya, to its parent company Sunway Bhd (KL) for RM60 million. The move is part of a capital recycling initiative to fund new developments in Seberang Perai.
In a Bursa Malaysia filing on Tuesday, Sunway REIT said the conditional sale and purchase agreement (SPA) was signed with Sunway Medical Centre Penang Sdn Bhd — a subsidiary of Sunway Healthcare Holdings Bhd, which is 84%-owned by Sunway City Sdn Bhd, a wholly-owned unit of Sunway Bhd.
The disposal price represents a 9.1% premium to the property’s market value of RM55 million, based on a valuation in July 2025, and is expected to generate a disposal gain of RM4 million.
Sunway REIT said proceeds from the sale will be channelled toward the construction of a new hotel above Sunway Carnival Mall in Seberang Perai, instead of refurbishing the ageing Seberang Jaya property. “The proposed disposal forms part of our strategic capital recycling initiative to optimise our portfolio and fund higher-growth assets,” it said.
Sunway REIT originally purchased the Seberang Jaya hotel from Sunway Hotel (Seberang Jaya) Sdn Bhd in 2010 for RM51.9 million. The hotel has been under a 10-year master lease agreement since 2020, which will be terminated upon completion of the sale.
The transaction, deemed a related-party deal, involves overlapping interests between Sunway’s executive chairman Tan Sri Jeffrey Cheah Fook Ling and his daughter, Datin Paduka Sarena Cheah Yean Tih, who are major shareholders in both Sunway and Sunway REIT. Completion is targeted for the fourth quarter of 2027.
Separately, Sunway REIT said the new hotel at Sunway Carnival Mall is expected to cost RM140 million, while another redevelopment project at Sunway Pier in Port Klang carries an estimated cost of RM462 million.
At market close on Tuesday, Sunway REIT units gained one sen or 0.46% to RM2.20, valuing the trust at RM7.53 billion. Sunway shares slipped two sen or 0.36% to RM5.48, with a market capitalisation of RM34.36 billion.
