Sunway's Indirect Unit Secures Singapore Residential Site Worth SGD750.57 Mln

KUALA LUMPUR, June 23 (Bernama) -- Sunway Bhd's indirect wholly-owned subsidiary, SMCL Haven 3 Pte Ltd (SMCLH3), has secured a SGD750.57 million (RM2.4 billion) residential development site at River Valley Green, Singapore, through a joint bid with CSC Land Group (Singapore) Pte Ltd. 

CSC is a Singapore-incorporated company principally involved in real estate development.

In a filing with Bursa Malaysia today, Sunway said the Urban Redevelopment Authority of Singapore had awarded the 1.15-hectare land parcel, which carries a 99-year lease term, to SMCLH3 and CSC following a successful tender.

According to Sunway, SMCLH3 and CSC will incorporate a joint venture (JV) company to undertake the development.

"SMCLH3 and CSC will incorporate a JV company -- in which SMCLH3 and CSC shall have equity interest in the proportion of 60:40 -- at a later date to undertake the development of the land, subject to regulatory approvals," it said.

Sunway said the proposed project is expected to contribute positively to its earnings from the financial year ending Dec 31, 2029 onwards.

On potential risks, Sunway said the project is subject to usual property development and construction-related risks, including fluctuations in the raw materials prices, interest rate movements and gyrations in the property cycle.

“However, these risks could be mitigated by Sunway Group's and CSC's experience and track record in property development,” it added.

-- BERNAMA