BY NADYA NGUI
Revenue generator: A file picure shows the group’s crown jewel Sunway Lagoon Resort Hotel in Petaling Jaya. Sunway says the proposed project in Singapore will contribute positively to the earnings of the group from the financial year ending Dec 31, 2018.
PETALING JAYA: Sunway Bhd will work with its joint venture partners to develop leasehold land measuring 21,014 sq m in Singapore into “executive condominiums”.
In a filing with Bursa Malaysia yesterday, it said Sunway Developments Pte Ltd (SDLP) and Hoi Hup Realty Pte Ltd had won a tender to buy 99-year leasehold land at Anchorvale Lane in Singapore for S$240.95mil (RM724.14mil).
Sunway said that the land would be acquired from the Housing and Development Board of Singapore.
It would be acquired by a proposed new joint venture company at the tender price, in which Hoi Hup, SDPL, Oriental Worldwide Investments Inc and Azuki Investments Pte Ltd would have equity interest in the proportion of 62:30:5:3.
Sunway said its cost of investment in the joint venture is S$72.28mil (RM218mil).
Hoi Hup and Azuki are Singapore-based real-estate companies while Oriental is an investment holding company incorporated in British Virgin Islands.
It said the proposed new joint venture company to be set up would be known as Hoi Hup Sunway Sengkang Pte Ltd.
The completion period of the proposed project will be within two years or earlier, commencing from Sept 5 and is expected to contribute positively to the earnings of Sunway Group from the financial year ending Dec 31, 2018.
“The proposed project is subjected 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,” it said.
In Malaysia, Sunway said it would launch RM5bil worth of properties in Penang over the next eight years which will include hospitals, colleges and hotels.
It is planning a RM2.3bil integrated project on 23-acre in Paya Terubong on the island in the third quarter of 2016 and construction is scheduled to start in the third quarter of 2017.
According to a report, the group is focusing on the Klang Valley, Johor Baru and Penang.
In a note to investors, Maybank Research said in the first half this year, Sunway’s effective locked-in new property sales were on track, hitting RM510mil or 46% of its target of RM1.1bil for 2016, against RM912mil last year.
The research house said effective unbilled sales stood at RM1.5bil at end-June 2016, 2.2 times its financial year 2017 revenue forecast.
It has imputed RM3bil wins for 2016.
Despite its earnings being 35% lower at RM154.36mil in the second quarter ended June 30, 2016 compared with a year earlier, Maybank said it has raised the group’s 2016, 2017, 2018 earnings forecast by 1%, 2.5% and 2.3%.
