PETALING JAYA: Sunway Real Estate Investment Trust (Sunway REIT) has proposed to dispose of three parcels of leasehold land in Bandar Sunway, Selangor, for RM613mil cash.

In a filing with Bursa Malaysia, the REIT — via its trustee RHB Trustees Bhd — said it had entered into a conditional sale and purchase agreement with Sunway College (KL), a wholly owned subsidiary of Sunway Education Group Sdn Bhd.

The transaction also includes the disposal of several buildings and four sports facilities located on the land.

Upon completion, Sunway REIT is expected to record a disposal gain of RM21mil in the financial year ending Dec 31, 2025 (FY25).

Sunway REIT stated the disposal price reflects a 4.6% premium over the properties’ appraised market value of RM586mil. Compared against its original investment cost, the deal is expected to crystallise in a total gain of RM41mil.

The REIT added the net proceeds from the proposed disposal of RM613mil will be redeployed for yield accretive investments and asset enhancement initiatives (AEI) that are strategically aligned towards the group’s TRANSCEND 2027 targets.

“In the event no new investment or AEI is secured within the next 12 months, Sunway REIT will utilise the proceeds to repay the borrowings, of which it is expected to reduce the gearing of Sunway REIT from 41% to 38% and result in financing cost savings of RM24mil per annum,” it added.

The proposed disposal is expected to be completed in the second half of 2025.