Sunway to form JV with Hoi Hup to acquire residential land in Singapore for RM2.5b

KUALA LUMPUR (Nov 19): Diversified conglomerate Sunway Bhd said it will form a joint venture (JV) company to buy 22 plots of residential freehold land at Thiam Siew Avenue in Singapore for a total consideration of S$815 million (approximately RM2.51 billion).

The group, via its Singapore subsidiary Sunway Developments Pte Ltd (SDPL), together with Singapore-based property developer Hoi Hup Realty Pte Ltd, had on Thursday (Nov 18) entered into a collective sale and purchase agreement with the owners of the land.

Sunway did not specify the owners of the land.

In a bourse filing on Friday (Nov 19), Sunway said a proposed JV company will be incorporated, in which Hoi Hup and SDL will have an equity interest in the proportion of 70:30.

Sunway said SDPL’s cost of investment in the JV is estimated to be about S$140 million, or approximately RM431.2 million.

“The property, which is located in Tanjong Katong, Singapore, currently comprises landed residential units with a total land area of approximately 263,794 square feet.

“The property will be redeveloped into a new private residential development with an allowed plot ratio of 2.8 times, subject to authorities’ approval,” said Sunway.

According to Sunway, the proposed project is expected to contribute positively to the group’s earnings from the financial year ending Dec 31, 2024 onwards. 

Shares of Sunway were down by 1.18% or two sen at RM1.68 as at the midday break, valuing the group at RM8.29 billion.

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