KUALA LUMPUR (Sept 12): Sunway Bhd’s unit has secured a land parcel near Jurong West from the Housing and Development Board of Singapore, to develop an executive condominium (EC) housing development project worth RM1.2 billion (S$348.5 million).

In a filing to Bursa Malaysia, the company said its subsidiary Sunway Developments Pte Ltd (SDPL) and Hoi Hup Realty Pte Ltd, jointly submitted the tender for the EC development at Tengah Plantation Close for a 99-year lease term.

Hoi Hup and SDPL will incorporate a joint venture (JV) company, in which Hoi Hup or its nominee companies and SDPL will have equity interest in the proportion of 65:35 at a later date, to undertake the development in the Jurong Lake district situated between Jurong West and Choa Chu Kang.

This is the fifth JV that SDPL has formed with Hoi Hup for development projects in Singapore since 2016.

SDPL is a wholly-owned subsidiary of Sunway Holdings Sdn Bhd, which in turn is a wholly-owned subsidiary of Sunway. Meanwhile, Hoi Hup is a company incorporated in Singapore with a paid-up capital of S$3,000,000 (RM10.3 million) which focuses on real estate development.

The project commenced on Sept 11, and is expected to be completed in five years.

The project is expected to contribute positively to the earnings of Sunway Group for the financial year ending Dec 31, 2025 onwards.

“The 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 projects, this risk could be mitigated,” Sunway said.

According to the Housing and Development Board of Singapore, EC are strata-titled apartments which are built and sold by property developers to eligible Singaporean households.