Sunway, Hoi Hup secure Singapore land at RM1.32b for condominium project

KUALA LUMPUR (24): 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 yesterday, Sunway said the Housing and Development Board of Singapore had on Tuesday 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.

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The letter of award was received by Sunway yesterday.

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.

“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,” said Sunway.

This article first appeared in The Edge Financial Daily, on Jan 24, 2019.

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