Sunway Developments in bid to redevelop residential estate in Singapore
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Sunway Bhd’s unit Sunway Developments Pte Ltd (SDPL) and Singapore-based Hoi Hup Realty Pte Ltd have entered into a sale and purchase agreement with the collective majority owners of a 160-unit private residential estate in Clementi, Singapore for S$530.0 million (RM1.6 billion).
According to a filing with Bursa Malaysia, SDPL, Hoi Hup and S C Wong Pte Ltd plan to set up a joint venture company to re-develop Brookvale Park, which sits on a 999-year leasehold land measuring 34,654 square meter, into a new private residential development with an allowed plot ratio of 1.6 times. The plan is subject to authorities’ approval.
Hoi Hup, SDPL and S C Wong Pte Ltd will have 60% : 30% : 10% interests respectively in the joint venture.
SDPL is expected to pump in about S$70.0 million or RM210.0 million into the venture.
The proposed project is expected to contribute positively to the earnings of Sunway Group from the financial year ending Dec 31, 2019 onwards.
The group’s share price closed down one sen at RM1.65 with some 921,500 shares changing hands last week.
Questions & Answers
Q.Which companies are involved in this redevelopment project?
Which companies are involved in this redevelopment project?
Sunway Developments Pte Ltd (SDPL), Singapore-based Hoi Hup Realty Pte Ltd, and S C Wong Pte Ltd are planning to set up a joint venture company for the redevelopment of the private residential estate.
Q.What is the expected financial contribution from Sunway Developments Pte Ltd to the venture?
What is the expected financial contribution from Sunway Developments Pte Ltd to the venture?
SDPL is expected to invest approximately S$70.0 million, which is equivalent to RM210.0 million, into the joint venture company established for this redevelopment project.
Q.What is the size and leasehold term of the land being redeveloped?
What is the size and leasehold term of the land being redeveloped?
The Brookvale Park estate is situated on a 999-year leasehold land parcel. This land measures 34,654 square metres and has an allowed plot ratio of 1.6 times.
Q.When is this project expected to start contributing to Sunway Group's earnings?
When is this project expected to start contributing to Sunway Group's earnings?
The proposed redevelopment project is anticipated to positively impact the earnings of the Sunway Group. This contribution is expected to begin from the financial year ending December 31, 2019, onwards.
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