Sunway unit partners Hoi Hup to acquire land

PETALING JAYA: Sunway Bhd’s sub-unit has partnered with Singapore developer Hoi Hup Realty Pte Ltd to acquire 22 plots of residential freehold land at Thiam Siew Avenue in Tanjong Katong, Singapore, for S$815mil (RM2.51bil).

Sunway said in a filing with Bursa Malaysia filing that its sub-subsidiary Sunway Developments Pte Ltd (SDPL) and Hoi Hup have signed a sale and purchase agreement with the owners of the land, which comprises landed residential units with a total land area of about 263,794 sq ft.

The parties have also proposed a joint venture company with 70:30 ownership between Sunway Developments and Hoi Hup respectively, to jointly redevelop the land.

In a press statement yesterday, Sunway said the proposed new development will have an allowed plot ratio of 2.8 times, subject to approval from authorities, and will feature luxury private residential condominiums with a potential gross development value of S$2bil (RM6.14bil).

Sunway Development’s cost of investment in the joint venture is estimated to be about S$140mil (RM431mil).

“The proposed project is expected to contribute positively to the earnings of Sunway Group from the financial year ending Dec 31 2024 onwards. The proposed project is subjected to normal development and construction risks. However, with the past track record and expertise of Hoi Hup and SDPL in development and construction of similar projects, this risk could be mitigated,” said Sunway.