KUALA LUMPUR (June 23): Sunway Bhd (KL:SUNWAY) will develop a prime residential site in Singapore, after a consortium it is part of secured the land for S$750.57 million (about RM2.4 billion).

The 11,516 sq m site at River Valley Green was awarded by the Urban Redevelopment Authority of Singapore to SMCL Haven 3 Pte Ltd (SMCLH3) — an indirect wholly owned unit of Sunway — and CSC Land Group (Singapore) Pte Ltd following a successful joint tender. 

The site comes with a 99-year lease and is designated for residential development, Sunway said in a Bursa Malaysia filing on Tuesday.

SMCLH3 will hold a 60% stake in the joint venture, with CSC owning the remaining 40% to undertake the development of the land, subject to regulatory approvals. 

Sunway noted that while the project is exposed to typical property development risks — including fluctuations in raw material prices, interest rate movements and property cycle volatility — it is expected to contribute positively to the group’s earnings from the financial year ending Dec 31, 2029 onwards.

This marks Sunway’s second collaboration with CSC Land. Their first joint project is ELTA, an ongoing private condominium development at Clementi Avenue 1 in Singapore. 

The River Valley Green tender, which closed on June 18, attracted four bids.

According to a Hong Leong Investment Bank note dated June 19 citing Urban Redevelopment Authority (URA) data, the Sunway-led consortium submitted the highest bid of S$750.6 million, equivalent to S$18,621.77 per sq m of gross floor area.

The bid exceeded competing offers from COLI (Singapore) Pte Ltd (S$720.7 million), a GuocoLand (Singapore) Pte Ltd-led consortium (S$715.86 million), and Kingsford Huray Development Pte Ltd (S$705.45 million).

Shares of Sunway ended eight sen or 1.52% lower at RM5.19 on Tuesday, giving it a market capitalisation of RM35.32 billion.