The Board of Directors of Sunway is pleased to announce that Hoi Hup Realty Pte Ltd (“Hoi Hup”) and Sunway Developments Pte Ltd (“SDPL”) had on 15 February 2018 entered into a Collective Sale and Purchase Agreement with the collective majority owners of Brookvale Park to acquire Brookvale Park (“the Property”) for a total consideration of S$530.0 million (equivalent to approximately RM1.59 billion). The completion of the agreement is subject to fulfillment of conditions precedent and authorities’ approval. 

Brookvale Park, located on 999-year leasehold land in Clementi, Singapore, is currently a 160-unit private residential estate with a land area of 34,654 square meter. The Property will be redevelop into a new private residential development with an allowed plot ratio of 1.6 times, subject to authorities’ approval (“the Proposed Project”).

A proposed joint venture company will be set up, in which Hoi Hup, SDPL and S C Wong Pte Ltd (“SC Wong”) will have equity interest in the proportion of 60% : 30% : 10%.

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. 

SC Wong is a company incorporated in Singapore with a paid-up capital of S$15,000,000/. The principal activity of SC Wong is investment holding. 

SDPL cost of investment in the joint venture is estimated to be about S$70.0 million or approximately RM210.0 million. 

The Proposed Project is expected to contribute positively to the earnings of Sunway Group from the financial year ending 31 December 2019 onwards. 

The Proposed Project is subjected to normal development and construction risks. However, with the past experiences and expertise of Hoi Hup and SDPL in development and 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 15 February 2018.