Thursday 28 Mar 2024
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KUALA LUMPUR (Jan 23): Sunway Bhd, in a joint venture with Singapore's Hoi Hup Realty Pte Ltd, has secured a 2.5-hectare piece of land in Tampines, Singapore for S$434.45 million (RM1.32 billion) for the development of executive condominiums.

In a filing with Bursa Malaysia, Sunway said the Housing and Development Board of Singapore had yesterday awarded the land parcel at Tampines Avenue 10 for a 99-year lease term to Sunway's indirect wholly-owned subsidiary Sunway Developments Pte Ltd (SDPL) in Singapore and Hoi Hup, following a successful tender for the land jointly submitted by the two parties.

The letter of award was received by Sunway today.  

Sunway said the land will be acquired by a proposed new joint venture (JV) company to be incorporated, in which Hoi Hup and SDPL will have an equity interest in the proportion of 65:35. SDPL’s cost of investment in the JV is S$65 million (RM197.75 million).

"The proposed JV company will undertake the development of the executive condominium on the land," it added.

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

"The completion period of the proposed project will be 60 months or earlier, commencing from Jan 22. It is expected to contribute positively to the earnings of Sunway Group in the financial year 2023," the filing said.  

Sunway shares closed down two sen or 1.29% at RM1.53 today, giving it a market capitalisation of RM7.53 billion.

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