KUALA LUMPUR: Sunway Bhd's unit and Singapore-based Hoi Hup Pte Ltd, have been awarded a 2-hectare land to develop a 99-year lease term executive condominium housing development worth S$423.38 million in Tengah, Singapore by the Housing and Development Board of Singapore.
Sunway's subsidiary, Sunway Developments Pte Ltd (SDPL) and Hoi Hup jointly tendered for the land.
Hoi Hup is a real estate developer incorporated in Singapore with a paid-up capital of S$3 million.
Hoi Hup and SDPL will incorporate a joint venture, in which Hoi Hup or its nominee company(ies) and SDPL will have equity interest in the proportion of 65:35 at a later date, to undertake the development.
The proposed project is set to be completed within 60 months starting from Feb 14, 2024, or earlier.
The proposed project is expected to contribute positively to the earnings of Sunway Group in the financial year ending Dec 31, 2028 onwards.
Sunway said the proposed project is subject to normal construction risk of materials price fluctuation. However, with the past experiences and expertise of Hoi Hup and SDPL in construction of similar project, this risk could be mitigated.