PETALING JAYA: Sunway Bhd
’s latest acquisition will beef up its presence in the Singapore property market after it secured another piece of land in the city-state.
Sunway’s unit Sunway Developments Pte Ltd (SDPL), together with Hoi Hup Realty Pte Ltd, were awarded the land from the Housing and Development Board of Singapore, after a successful joint tender for the land.
The leasehold site, measuring 23,512 sq m in Tampines, will be used for a mixed commercial and residential development worth an estimated S$668.28mil or about RM2.19bil.
Hoi Hup and SDPL will form a joint-venture company to undertake the development of the land.
Hoi Hup or its nominee companies, together with SDPL, will have equity interest in the proportion of 65:35 at a later date for the project.
CIMB Securities Research has maintained a “buy” call on the counter with an unchanged sum-of-the-parts-based target price of RM5.
“We maintain our earnings estimates for now pending an update on the prospective gross development value (GDV) for the new project in Tampines,” the research house said, giving the project an estimated pre-tax profit margin of 12%.
The project is expected to comprise about 600 residential units and commercial components such as retail spaces, supermarkets, a food court and a childcare centre.
