Sunway acquires first land for 2018 in Singapore

KUALA LUMPUR: Sunway Bhd (Sunway) and Hoi Hup, has entered into a collective sale and purchase agreement to acquire a prime 8.6acre plot of land for S$530 million (about RM1.59 billion) in Clementi, Singapore for redevelopment into a new private residential development.

Currently, the 999-year leasehold land is the site for a 160-unit private residential estate named Brookvale Park.

Clementi is a mature residential neighbourhood which is also known for the its tertiary educational institutions located there, including Ngee Ann Polytechnic, Singapore Polytechnic, and the National University of Singapore. Nearby amenities include a fivestorey Clementi Mall.

Subject to approval from the authorities, the plan is to redevelop the site into a new private residential development. A proposed joint venture company will be set up, in which Hoi Hup, SDPL and S C Wong Pte Ltd (SC Wong) to have equity interest to the proportion of 60 per cent:30 per cent:10 per cent.

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 real estate development company in Singapore while SC Wong is an investment holding company in Singapore. The proposed development is expected to contribute positively to the earnings of Sunway from the financial year ending December 31, 2019 onwards.

While there is no guidance from management regarding the potential gross development value (GDV), the research arm of Kenanga Investment Bank Bhd (Kenanga Research) estimated it to range between S$630 million and S$806 million based on the asking price range of S$1,400 to S$1,800 per square foot (psf) for the Clementi Canopy.