The Board of Directors of Sunway wishes to announce that Sunway Iskandar Sdn Bhd (“SISB”), a subsidiary of Sunway City Sdn Bhd (“SunCity”) which in turn is a wholly-owned subsidiary of Sunway has on 11 June 2015, entered into a Subscription and Shareholders’ Agreement (“SSA") with Daiwa House Malaysia Sdn Bhd (“Daiwa”) and Daiwa Sunway Development Sdn Bhd (“JVCo”) with the intention of establishing a joint venture via the JVCo to construct residential properties on the land measuring provisionally 52,697.71 square metres in area held under title no. H.S.(D) 550087 PTD 200667 Mukim Pulai, Daerah Johor Bahru, Johor (“the Land”) as well as to record the commitments of SISB and Daiwa and regulate their rights as shareholders of the JVCo (“Proposed Joint Venture”).

SISB has also on even date, entered into a Lease Purchase Agreement (“LPA”) with the JVCo for the disposal and transfer of the lease over the Land (“Lease”) together with the rights and benefits of the Lease Extension (as defined below) and all rights of access to and from the Land and the right to use and enjoy the Land and the right to develop the Land on an “as is where is” basis but free from all encumbrances for a total sale consideration of RM63,070,000/- (excluding goods and services tax (“GST”)) (“Proposed Disposal”).

Please refer to the attachment below for further details of the Proposed Joint Venture and Proposed Disposal.

This announcement is dated 11 June 2015.