Brookvale Park, Singapore. Pic by Singapore Business Times
KUALA LUMPUR: Sunway Bhd
's unit and Hoi Hup Realty Pte Ltd are buying a private residential property, Brookvale Park, in Singapore for S$530mil (RM1.59bil) for redevelopment.
Sunway said its unit Sunway Developments Pte Ltd had entered into a collective sale and purchase agreement with the collective majority owners of Brookvale Park to the property.
News reports said that Brookvale Park, was launched for sale last year by tender for a minimum price of S$530mil.
Sunway said Brookvale Park, located on 999-year leasehold land in Clementi, Singapore, is currently a 160-unit private residential estate with a land area of 34,654 square metres.
“The property will be redeveloped into a new private residential development with an allowed plot ratio of 1.6 times, subject to authorities’ approval,” it said.
Under the corporate exercise, a joint venture will be set up, in which Hoi Hup, Sunway Developments and S C Wong Pte Ltd will have equity interest in the proportion of 60% : 30% : 10%.
Hoi Hup is incorporated in Singapore and its core business is real estate development. SC Wong is a investment holding company.
“Sunway Development's cost of investment in the joint venture is estimated to be about S$70.0mil or approximately RM210mil,” it said.
Sunway said the proposed project is expected to contribute positively to the earnings of Sunway Group from the financial year ending Dec 31, 2019.
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