PETALING JAYA – Sunway Bhd’s unit Sunway Developments Pte Ltd (SDPL) and Hoi Hup Realty Pte Ltd have won a tender to acquire a 99-year leasehold land in Singapore from the Housing and Development Board of Singapore.
In a filing with Bursa Malaysia yesterday, Sunway said the tender price submitted jointly by the parties was S$240.95 million (about RM724.14 million). The 5.19-acre land is located at Anchorvale Lane in Sengkang.
The land will be acquired by a proposed new joint venture (JV) company at the tender price, in which Hoi Hup, SDPL, Oriental Worldwide Investments Inc. and Azuki Investments Pte Ltd will have equity interest in the proportion of 62:30:5:3.
The proposed JV company will be known as Hoi Hup Sunway Sengkang Pte Ltd. It will build and sell executive condominiums on the land, comprising 640 units housed in 10 blocks of 17 storeys each.
The indicative gross development value (GDV) of the project is S$520 million and SDPL’s cost of investment in the JV is S$72.28 million (about RM218 million).
The proposed project will take 48 months or less to complete, starting from Sept 5, 2016. It is expected to contribute positively to the earnings of Sunway Group from the financial year ending Dec 31, 2018 onwards.
The latest land acquisition will bring Sunway’s landbank in Singapore to 5.2 acres with a GDV of RM1.6 billion.
The group’s total landbank stands at 3,303 acres with a total GDV of RM49 billion. The landbank will keep the group busy for 15 years.
SDPL is a wholly owned subsidiary of Sunway Holdings Sdn Bhd, which is in turn a wholly owned subsidiary of Sunway.
Hoi Hup is a company incorporated in Singapore with a paid-up capital of S$3 million. The principal activity of Hoi Hup is real estate development.
Oriental is an investment holding company incorporated in British Virgin Islands while Azuki is a company involved in property investment incorporated in Singapore. – Sundaily