Sunway-led JV wins RM6.74 bil Bayshore Drive mixed-use site in Singapore

PETALING JAYA (July 20): Sunway Bhd said its 30%-owned joint ventures have secured a parcel of land at Bayshore Drive, Singapore, for S$2.128 billion (approximately RM6.74 billion) under a 99-year lease, following a successful tender under Singapore’s Government Land Sales (GLS) programme.

It said in a Bursa Malaysia filing that the Urban Redevelopment Authority of Singapore had awarded a site measuring approximately 57,460.6 sq m to Gemini Residential Pte. Ltd. (GRPL) and Gemini Trustee Pte Ltd (GTPL), acting in its capacity as trustee-manager of Gemini Mall Trust.

GRPL, GTPL and Gemini Mall Trust are all 30%-owned joint ventures of Sunway. GRPL and GTPL will jointly undertake the proposed residential and commercial development of the site, subject to regulatory approvals.

Sunway’s indirect wholly-owned subsidiaries SMCL Urban R2 Pte. Ltd. and SMCL Urban C2 Pte Ltd hold 30% stakes in GRPL and GTPL respectively.

The remaining interests are held by entities related to Frasers Property, Sekisui House and LC Realty, as disclosed in Sunway’s filing.

In GRPL, Frasers Property Phoenix Pte. Ltd. owns 37.5%, SMCL Urban R2 holds 30%, Sekisui House Ltd. owns 25%, and LC Realty Pte. Ltd. holds 7.5%.

In GTPL and Gemini Mall Trust, HSBC Institutional Trust Services (Singapore) Ltd., acting as trustee of Frasers Centrepoint Trust, holds 50%, while SMCL Urban C2 and Sekisui House hold 30% and 20% respectively.

According to the Urban Redevelopment Authority, the Bayshore Drive site is planned for a mixed-use development comprising residential and commercial components and is located near the upcoming Bedok South MRT Station on the Thomson-East Coast Line.

Sunway said the proposed development is expected to contribute positively to the earnings of the Sunway Group from the financial year ending Dec 31, 2029 onwards.

The group said the project is subject to the usual risks associated with property development and construction, including fluctuations in raw material prices, interest rate movements and property cycle conditions. These risks, it added, could be mitigated by the experience and track record of Sunway and its joint venture partners.

Sunway also said none of its directors, major shareholders or persons connected with them has any direct or indirect interest in the proposed project.

Strategic rationale

The S$2.128 billion tender is among Sunway’s largest overseas land acquisitions by value via a joint venture, based on the tender price disclosed.

The project expands Sunway’s Singapore residential exposure through a partnership model involving Frasers Property and Sekisui House, but earnings contribution is only expected from FY2029 onwards, underscoring the long lead times for large-scale mixed-use projects.

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