Sunsuria Bhd has significantly strengthened its position in the redevelopment of Kampung Sungai Baru after raising its stake in KL City Gateway Sdn Bhd (KLCG) from 20% to 61%. The move is expected to give Sunsuria greater strategic control over one of Kuala Lumpur’s most valuable urban renewal projects, which carries a gross development value (GDV) of RM2.75 billion.
In a filing to Bursa Malaysia, Sunsuria announced that it had signed a share purchase agreement to acquire an additional 41% equity in KLCG for RM21.46 million. The shares were purchased from four existing shareholders: Suez Capital Sdn Bhd, Scenic Starhill Sdn Bhd, Yedor Holdings Sdn Bhd, and Yeoh Ah Tu. Sunsuria previously acquired its initial 20% stake in December 2024.
The company also entered into a new shareholders’ agreement with Transworld Equity Sdn Bhd and Suez Capital—who together retain the remaining 39% stake—to formalise governance roles and ensure coordination in decision-making following the acquisition.
Under the terms of the transaction, Sunsuria is required to provide financial assistance of up to RM387 million to KLCG. This includes shareholder advances and corporate guarantees intended to support the company’s working capital and secure future bank financing for the project.
The redevelopment covers 3.91 hectares of prime land adjacent to Kampung Baru. Phase 1, spanning 3.22 hectares, will be a mixed-use integrated development featuring residential units, serviced apartments, office suites, retail space, and supporting public amenities. Phase 2, covering 1.71 acres, is still awaiting regulatory and planning approvals.
Sunsuria said its increased stake will contribute positively to earnings throughout the Phase 1 development timeline, with long-term benefits expected as the project matures. The company remains optimistic about KLCG’s prospects given the project’s central location, high redevelopment potential, and growing interest in urban mixed-use developments.
However, the acquisition is classified as a related-party transaction, as several key individuals within Sunsuria—including Executive Chairman Tan Sri Ter Leong Yap and his daughter, Executive Director Ter Shin Nie—have interests linked to the selling entities. Tan Sri Ter’s brother, Datuk Ter Leong Hing, is also a director and major shareholder of Scenic Starhill, Suez Capital and Transworld.
Sunsuria’s shares closed unchanged at 44.5 sen, valuing the company at RM398.7 million, though the stock has fallen more than 8% year-to-date.