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 18 November 2021, entered into a Collective Sale and Purchase Agreement with the owners of 22 plots of residential freehold land at Thiam Siew Avenue to acquire the Property for a total consideration of S$815.0 million (equivalent to approximately RM2.51 billion). The completion of the agreement is subject to fulfillment of conditions precedent and authorities’ approval.

The Property which is located in Tanjong Katong, Singapore, currently comprises landed residential units with a total land area of approximately 263,794 square feet. The Property will be redeveloped into a new private residential development with an allowed plot ratio of 2.8 times, subject to authorities’ approval (the “Proposed Project”).

A proposed joint venture company will be incorporated, in which Hoi Hup and SDPL will have equity interest in the proportion of 70:30.

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. 

SDPL’s cost of investment in the joint venture is estimated to be about S$140.0 million or approximately RM431.2 million.

The Proposed Project is expected to contribute positively to the earnings of Sunway Group from the financial year ending 31 December 2024 onwards. 

The Proposed Project is subjected to normal development and construction risks. However, with the past track record 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 acquisition of the Property and the Proposed Project. 

This announcement is dated 19 November 2021.