KUALA LUMPUR (July 9): A plot of land in Singapore eyed by a joint venture of Sunway Bhd (KL:SUNWAY) and Sing Holdings could potentially yield a development worth S$1.4 billion (RM4.7 billion), according to an analyst.
The Chuan Grove site, spanning over 170,000 sq ft, can accommodate about 555 homes, Hong Leong Investment Bank’s (HLIB) estimates showed. Healthy take-up and pricing achieved by a nearby project underscores demand, market confidence and feasibility of Chuan Grove, the house noted.
“This current Chuan Grove site should help to replenish project pipelines in the private residential space,” HLIB said.
On Tuesday, The Edge Singapore reported that the bid by the joint venture, 65% controlled by Sing Holdings and 35% by Sunway, has emerged as the top offer at S$703.6 million, or S$1,376 psf per plot ratio.
The 99-year leasehold site is within 400 metres of the Lorong Chuan MRT Station. The site is expected to be officially awarded to the winning developer within one-to-two weeks, though the Urban Redevelopment Authority has the right to reject the highest or any bids.
If awarded, the project would mark the first collaboration between Sunway and Sing Holdings in Singapore’s property market. HLIB expects the project to launch sometime between 2026 and 2027, producing RM40.4 million, or 0.65 sen per share, for Sunway annually over four years.
For now, HLIB is keeping its forecasts for Sunway until the official award. The house also maintained its ‘buy’ call and target price of RM5.90 for the stock.
Sunway currently has five ongoing or upcoming projects, including The Continuum, Terra Hills, and a site in Tampines in the private condominium space, along with Novo Place and Otto Place in the executive condominium segment.
Sunway's share price was a tad higher at RM4.80 on Wednesday, giving the company a market capitalisation of RM30 billion.