The Board of Directors of Sunway is pleased to announce that Hoi Hup Realty Pte Ltd (“Hoi Hup”) and Sunway Developments Pte Ltd (“SDPL”) has on 5 September 2016, won a tender to acquire from the Housing and Development Board of Singapore a 99-year leasehold land at Anchorvale Lane (Lot 2924T MK21), Sengkang (“the Land”). The tender price submitted jointly by the parties was S$240.95 million (equivalent to approximately RM724.14 million).

The said Land will be acquired by a proposed new joint venture company at the tender price, in which Hoi Hup, SDPL, Oriental Worldwide Investments Inc. (“Oriental”) and Azuki Investments Pte Ltd (“Azuki”) will have equity interest in the proportion of 62:30:5:3.  

The proposed new joint venture company to be set up will be known as Hoi Hup Sunway Sengkang Pte Ltd (“Hoi Hup Sunway Sengkang”) which will build and sell Executive Condominiums (“the Proposed Project”) on the said Land.

SDPL is a wholly-owned subsidiary of Sunway Holdings Sdn Bhd, which is in turn a wholly-owned subsidiary of Sunway.

Hoi Hup is a company incorporated in Singapore with a paid-up capital of S$3,000,000/-. The principal activity of Hoi Hup is real estate development. 

Oriental is a company incorporated in British Virgin Islands with a paid-up capital of USD2/-. The principal activity of Oriental is an investment holding company.

Azuki is a company incorporated in Singapore with a paid-up capital of S$100,000/-. The principal activity of Azuki is property investment.

SDPL cost of investment in the joint venture is S$72.28 million or approximately RM218 million.

The completion period of the Proposed Project shall be 48 months or earlier, commencing from 5 September 2016. It is expected to contribute positively to the earnings of Sunway Group from the financial year ending 31 December 2018 onwards. 

The Proposed Project is subjected to normal construction risk of materials price fluctuation. However, with the past experiences and expertise of Hoi Hup and SDPL in construction of similar project, this risk could be mitigated.

None of the directors or substantial shareholders of Sunway or persons connected with them has any interest, whether direct or indirect in the Proposed Project. 

This announcement is dated 6 September 2016.