KUALA LUMPUR (Feb 15): Sunway Bhd plans to buy Brookvale Park in Clementi, Singapore for S$530 million (RM1.59 billion) to be redeveloped into a new private residential development.

Its wholly-owned subsidiary Sunway Developments Pte Ltd (SDPL) and Singapore developer Hoi Hup Realty Pte Ltd today entered a collective sale and purchase agreement with the collective majority of Brookvale Park.

A proposed joint venture (JV) company will be set up in which Hoi Hup, SDPL and Singapore-based investment holding company SC Wong Pte Ltd will have equity interest based on the ratio of 60:30:10.

SDPL's cost of investment in the JV is estimated to be about S$70 million (RM210 million).

In a filing with Bursa Malaysia today, Sunway said Brookvale Park, located on a 999-year leasehold land in Clementi, Singapore, is currently a 160-unit private residential estate with a land area of 34,654 square meter.

"The property will be redeveloped into a new private residential development with an allowed plot ratio of 1.6 times, subject to authorities' approval. The project is expected to contribute positively to Sunway's earnings from the financial year ending Dec 31, 2019 onwards," it said.

Sunway added that the proposed project is subjected to normal development and construction risks.

"However, with the past experiences and expertise of Hoi Hup and SDPL in development and construction of similar [projects], this risk could be mitigated," it said.

Sunway closed down one sen or 0.6% to RM1.65 with 921,500 shares done for a market capitalisation of RM8.07 billion.