BURSA ANNOUNCEMENTS

Date : 23 January 2019

OTHERS SUNWAY BERHAD ("SUNWAY") - LETTER OF AWARD FOR THE TENDER OF LAND PARCEL AT TAMPINES AVENUE 10, TAMPINES, SINGAPORE

SUNWAY BERHAD

Type Announcement
Subject OTHERS
Description
SUNWAY BERHAD ("SUNWAY")
- LETTER OF AWARD FOR THE TENDER OF LAND PARCEL AT TAMPINES AVENUE 10, TAMPINES, SINGAPORE

The Board of Directors of Sunway is pleased to announce that the Housing and Development Board of Singapore had on 22 January 2019, awarded a land parcel measuring approximately 2.5 hectares or 6.2 acres at Tampines Avenue 10 (Lot 7545K MK 28), Tampines, Singapore (“the Land”) for a 99-year lease term Executive Condominium  Housing Development at S$434.45 million (equivalent to approximately RM1.32 billion) to Hoi Hup Realty Pte Ltd (“Hoi Hup”) and Sunway Developments Pte Ltd (“SDPL”) following a successful tender for the Land jointly submitted by the parties. The letter of award was received by Sunway today.  

 

The Land will be acquired by a proposed new joint venture company to be incorporated (“Proposed JV Company”), in which Hoi Hup or its nominee company(ies) and SDPL will have equity interest in the proportion of 65:35.  

 

The Proposed JV Company will undertake the development of the Executive Condominium (“the Proposed Project”) on the Land.

 

SDPL is a wholly-owned subsidiary of Sunway Holdings Sdn Bhd which in turn is a wholly-owned subsidiary of Sunway. It is incorporated in Singapore with a paid-up capital of S$6,690,002. Its principal activity is investment holding.

 

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

 

SDPL’s cost of investment in the joint venture is S$65 million or approximately RM197.75 million.

 

The completion period of the Proposed Project shall be 60 months or earlier, commencing from 22 January 2019. It is expected to contribute positively to the earnings of Sunway Group in the financial year 2023.  

 

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 major shareholders of Sunway or persons connected with them has any interest, whether direct or indirect in the Proposed Project. 

 

This announcement is dated 23 January 2019.






Announcement Info

Company Name SUNWAY BERHAD
Stock Name SUNWAY
Date Announced 23 Jan 2019
Category General Announcement for PLC
Reference Number GA1-23012019-00083


Back