Sunway to develop public housing in Singapore after winning tender

KUALA LUMPUR: Sunway Holdings Bhd is set to undertake a public housing development in Singapore after being awarded the tender of land parcel by the Housing and Development Board of Singapore (HDB).

The tender — which was awarded on Monday, Jan 10 — is for a tract at Yuan Ching Road for a 103-year lease term at S$131.6 million (RM312.02 million), it said in a Bursa announcement on Tuesday.

The bid was jointly submitted by Hoi Hup Realty Pte Ltd, SC Wong Holdings Pte Ltd and Sunway's wholly-owned subsidiary Sunway Developments Pte Ltd.

Hoi Hup, Sunway and SC Wong intend to incorporate a joint venture on 60:30:10 basis to undertake the development of the land, which will be under the design, build and sell scheme.

The project is expected to be completed in 48 months or earlier from Jan 10, 2011. Sunway foresees positive contributions from the project to its earnings from financial year ending Dec 31, 2012 onwards.

Hoi Hup's core business is property development, while SC Wong's is investment holding. The former has a paid-up capital of S$3 million and S$15 million respectively.