This article first appeared in The Edge Financial Daily on September 13, 2018

KUALA LUMPUR: Sunway Bhd and a Singapore company have won the tender to develop a 4.46-acre (1.8ha) executive condominium site in Singapore via their S$271 million (RM817 million) bid.

Sunway said the Housing and Development Board of Singapore awarded the land, located in Sembawang, for a 99-year lease term to Hoi Hup Realty Pte Ltd and Sunway Developments Pte Ltd.

Sunway Developments is a wholly-owned unit of Sunway Holdings Sdn Bhd, which in turn is wholly-owned by Sunway.

The joint-venture (JV) company will be 65%-owned by Hoi Hup and the remainder 35%-owned by Sunway Developments, Sunway said in a filing with Bursa Malaysia.

The group said its cost of investment in the JV is S$50 million.

It did not mention the project’s gross development value.

Sunway said the project requires no more than 60 months from now to complete.

It added that the project is expected to contribute positively to its earnings from the financial year ending Dec 31, 2022 onwards.

Sunway’s share price fell six sen or 3.85% to RM1.50 yesterday, giving the group a market capitalisation of RM7.3 billion.