KUALA LUMPUR (July 17): Sunway Bhd (KL:SUNWAY) and SGX-listed Sing Holdings Ltd have successfully secured a residential development tender in Chuan Grove, Singapore, after submitting the highest bid of S$703.6 million (RM2.33 billion), or S$1,376 per square foot per plot ratio.
According to a bourse filing, the Urban Redevelopment Authority of Singapore awarded the 3.91-acre land parcel to Sunway Developments Pte Ltd (SDPL) and Sing Holdings Residential Pte Ltd (SHRPL) on Thursday.
The 99-year leasehold site is located within 400 metres of the Lorong Chuan MRT Station.
The two parties will form a joint venture to develop the site, with SHRPL holding a 65% stake and SDPL holding the balance 35%.
SDPL is a wholly-owned subsidiary of Sunway Holdings Sdn Bhd, which is in turn wholly owned by Sunway Bhd. SHRPL is a wholly-owned subsidiary of Sing Holdings Ltd, listed on the Main Board of the Singapore Exchange.
According to Hong Leong Investment Bank’s (HLIB) estimates, the Chuan Grove site could accommodate approximately 555 homes and could potentially yield an estimated gross development value of S$1.4 billion (RM4.7 billion).
Sunway said the residential project is expected to begin contributing positively to its earnings from the financial year ending Dec 31, 2026 (FY2026) onwards.
As of Thursday’s close, Sunway shares were up four sen or 0.8% at RM4.99, valuing the group at RM31.29 billion in market capitalisation. Year to date, the stock has gained 4.2%.