OTHERS SUNWAY REAL ESTATE INVESTMENT TRUST ("SUNREIT") - AWARD OF CONTRACT WORTH RM1.955 MILLION TO A RELATED PARTY, SUNWAY ENGINEERING SDN BHD
|SUNWAY REAL ESTATE INVESTMENT TRUST|
|Description||SUNWAY REAL ESTATE INVESTMENT TRUST ("SUNREIT")|
- AWARD OF CONTRACT WORTH RM1.955 MILLION TO A RELATED PARTY, SUNWAY ENGINEERING SDN BHD
We wish to announce that SUNREIT had on 1 November 2011, awarded a contract worth RM1.955 million to its related party, Sunway Engineering Sdn Bhd, for the mechanical and electrical services [hereinafter referred to as “the Proposed Work”] in respect of the proposed extension and renovation works on the 4-storey car park link and 2-level store/workshop in Sunway Resort Hotel & Spa, a property owned by SUNREIT [hereinafter referred to as "the Proposed Project"]. Sunway REIT Management Sdn Bhd ("the Manager") and Sunway Engineering Sdn Bhd are subsidiaries of Sunway Berhad (formerly known as Alpha Sunrise Sdn Bhd) ("Sunway"). Sunway is also a major unitholder of SUNREIT.
The Proposed Work is targeted to be completed by the 1st quarter of 2012 whilst the Proposed Project is expected to be completed by the 3rd quarter of 2014. Upon completion, the Proposed Project will benefit SUNREIT as
- there will be an Alfresco area with net lettable area of approximately 34,000 sq. ft. which will generate rental income. The facade of the Sunway Resort Hotel & Spa will be improved with the relocation of the existing loading dock along with improvement in efficiency at back of house for procurement division.
Pursuant to the Securities Commission’s Guidelines on Real Estate Investment Trusts, the Proposed Project is not a transaction that requires the approvals of the Securities Commission or the unitholders of SUNREIT.
Tan Sri Dato' Seri Dr Jeffrey Cheah Fook Ling and Sarena Cheah Yean Tih, who are Directors of Sunway REIT Management Sdn Bhd, are also Directors of Sunway.
Tan Sri Dato’ Seri Dr Jeffrey Cheah Fook Ling, Puan Sri Datin Seri (Dr) Susan Cheah Seok Cheng, Sarena Cheah Yean Tih, Evan Cheah Yean Shin, Sungei Way Corporation Sdn Bhd and Active Equity Sdn Bhd are major unitholders of SUNREIT as well as major shareholders of Sunway.
Save as disclosed above, none of the other directors of the Manager or major unitholders of SUNREIT or persons connected with them has any interest, direct or indirect in the Proposed Project.
The Audit Committee of the Manager is of the opinion that the award of the Proposed Project is in the best interests of SUNREIT and is not detrimental to the interests of the non-interested unitholders of SUNREIT as the terms of the Proposed Project are at arm's length basis and the award was made after an open tender process.
This announcement is dated 2 November 2011.
|Company Name||SUNWAY REAL ESTATE INVESTMENT TRUST|
|Date Announced||2 Nov 2011|