KUALA LUMPUR (Sept 29): Gamuda Bhd (KL:GAMUDA) announced on Monday that its Singapore subsidiary will take a controlling stake in the tripartite consortium that recently secured the tender for a mixed-use residential and commercial site at Chencharu Close in Yishun, Singapore, at a bid of S$1.012 billion (RM3.31 billion).
In a filing with Bursa Malaysia Monday, Gamuda revealed that the group has received the letter of award dated Sept 26 from the Housing Development Board of Singapore, confirming its acceptance of the tender submitted jointly by Gamuda (Singapore) Pte Ltd, alongside Evia MCS Pte Ltd and H108 Pte Ltd.
The 7.3-acre parcel, with a fresh 99-year leasehold tenure, is earmarked for an integrated development of up to 875 residential units, 12,600 sq m of commercial space, as well as a bus interchange and hawker centre. The project is expected to be completed within 84 months.
According to Gamuda, the land carries a maximum permissible gross floor area of about 1.03 million sq ft, with at least 74,500 sq m designated for residential use.
While the tender was initially submitted jointly by Gamuda (Singapore), Evia and H108, it should be noted that the land parcel under the tender will be acquired via Polaris Times Square Residences Pte Ltd and Times Square Mall Pte Ltd — the two newly-incorporated special purpose vehicles that will act as the real estate developers for residential and commercial components in the Chencharu Close project.
Gamuda (Singapore) — an indirect wholly-owned Singaporean unit of Gamuda held via its property arm Gamuda Land — owns 50% stakes in these two joint-venture companies, whereas Evia has 30% stakes and H108 has 20% stakes.
The acquisition of the Chencharu Close sites will be settled through a mix of cash and bank borrowings.
Evia is a Singaporean firm co-owned by Evia Real Estate (12) Pte Ltd and MCSL Pte Ltd, while H108 is jointly-owned by Atad Investment Pte Ltd, Ho Lee Group Pte Ltd, Ideal Plumbing Holding Pte Ltd and OES Holdings Pte Ltd.
In a press statement Monday, Gamuda Land highlighted that the Chencharu Close sites are strategically located within the mature northern corridor at Yishun, and the precinct is projected to yield 10,000 new homes by 2040, ensuring long-term housing demand.
“The win underscores Gamuda Land’s continued partnership with Evia and H108, who bring deep local expertise and proven market knowledge. By combining its regional development capabilities with the partners’ insights, Gamuda Land is well-positioned to deliver a project that resonates strongly with Singapore homebuyers while enhancing community vibrancy in Yishun,” the property firm remarked.
With Singapore’s strong property take-up rates and limited land supply, Gamuda Land said the Chencharu Close development is expected to be a key contributor to the group's property divisions sales.
“The Chencharu Close development is expected to strengthen group sale performance in the coming years, providing both revenue visibility and earnings diversification.
“Gamuda Land’s 50% equity stake ensures a meaningful contribution to group performance, while also reinforcing its quick turnaround project (QTP) strategy in high-demand urban markets,” it said.
Gamuda Land further said its parent company has been active in Singapore since 2015 through both infrastructure and property projects.
The group had fully sold residential projects such as GEM Residences and OLÁ developments. It had also secured contracts such as the Cross Island Line MRT stations and tunnels and the Gali Batu Multi-Storey Bus Depot.
“Together with Evia and H108, Gamuda aims to deliver another project that integrates seamlessly into Singapore’s urban fabric by working in close coordination with agencies such as the Land Transport Authority (LTA) and the Urban Redevelopment Authority (URA),” it said.
Notably, Gamuda’s latest win comes as Malaysian developers ramp up activity across the Causeway. Earlier this month, Sunway Bhd (KL:SUNWAY) and its Singapore-listed partner Sing Holdings Ltd secured a S$623.91 million residential site at Chuan Grove, following their earlier purchase of an adjacent parcel for S$703.6 million.
IOI Properties Group Bhd (KL:IOIPG), meanwhile, completed its RM2.75 billion acquisition of the South Beach development earlier in June.
Shares in Gamuda closed nine sen or 1.6% lower at RM5.52 on Monday, giving the construction and property group a market capitalisation of RM32.31 billion. Year to date, the counter has risen more than 17%.