Sunway-led JV wins RM6.74 bil Bayshore Drive mixed-use site in Singapore; IJM confirms exploration of potential construction business IPO

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

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. In a Bursa Malaysia filing, the group said the Urban Redevelopment Authority of Singapore had awarded a site measuring about 57,460.6 sq m to Gemini Residential Pte Ltd (GRPL) and Gemini Trustee Pte Ltd (GTPL), acting 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 the 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. According to Sunway, these risks may be mitigated by the experience and track record of the group 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. According to the company, the S$2.128 billion tender is among its larger overseas land acquisitions via a joint venture based on disclosed tender values. The project expands Sunway’s Singapore residential exposure alongside Frasers Property and Sekisui House, with earnings contribution expected from FY2029 onwards.

IJM confirms exploration of potential construction business IPO

IJM Corp Bhd has confirmed that it is exploring the feasibility of a potential listing of its construction business, following a news report that the unit could be valued at up to RM5 billion. In a Bursa Malaysia filing on Monday (July 20), the group said it will from time to time engage with and appoint relevant parties to evaluate available options, but stressed that the matter remains subject to further assessment. “The Company wishes to clarify that it is currently exploring the feasibility of a potential listing of its construction business,” IJM said.

The group added that it will make further announcements as required under the Main Market Listing Requirements of Bursa Malaysia Securities Bhd. The clarification follows a June 3 report by The New Straits Times, which cited analysts including CGS International as estimating a potential equity valuation of RM3 billion to RM4 billion, while TA Securities estimated about RM2.6 billion. Separate industry commentary has suggested the business could be worth up to RM5 billion. Analysts cited in the report said a potential listing could allow the construction business to be valued independently from IJM’s other segments, including property development, ports and toll concessions. The report added that the proposed IPO could involve IJM’s Malaysian and Singapore construction operations, which, according to the report, have a combined order book of RM9.65 billion as at March.

Industry observers cited in the report also highlighted the construction arm’s exposure to infrastructure works, industrial facilities and data centre-related projects as potential valuation drivers. The company has not disclosed any details on the possible listing structure, valuation, timing, stake sale or proceeds from the potential exercise. The clarification indicates that the proposed listing remains at an exploratory stage, and there is no assurance that any listing will materialise.

Also on the radar today

Today's roundup

Corporate developments led today’s property docket, with Sunway securing a S$2.128 billion Singapore Government Land Sales site through its 30%-owned joint ventures and IJM confirming it is evaluating the feasibility of a potential listing of its construction business. On the legal front, the High Court clarified that, on the facts before it, purchasers of strata units acquired through court-ordered auctions do not automatically assume previous owners’ maintenance arrears. Elsewhere, Marriott expanded its Penang presence through a Courtyard rebranding, ECM Libra secured financing for its Desaru beachfront hotel project, MUI Properties announced an industrial land disposal, PRG Holdings escalated a RM64.2 million construction dispute into winding-up proceedings, while S P Setia and IJM Land recorded project development milestones. Further disclosures on IJM’s construction business review and Sunway’s Singapore development will be key items to monitor.