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Sunway Property strengthens position to pursue growth in Singapore

Last update: 26/06/2018KUALA LUMPUR, June 26 (Bernama) -- Sunway Bhd's wholly-owned property development unit in Singapore, Sunway Developments Pte Ltd (SDPL), has entered into a sale and purchase agreement with Hoi Hup Realty Pte Ltd to dispose of its 30 per cent equity interest in Hoi Hup Sunway Novena Pte Ltd (HHSN) for S$39.9 million (S$1 = RM2.9523).

In a statement today, the group said the exercise was expected to be completed on June 30, 2018.

HHSN was set up in December 2012 to undertake the Royal Square at Novena development comprising a hotel, medical units and retail units which was successfully completed on July 12, 2017, with HHSN recording accumulated profits of S$132.5 million from the project.

Sunway said the proposed disposal marked the completion of this project and enabled the company to exit and monetise its investment in HHSN and utilise the proceeds for new projects, as well as acquire new landbank to strengthen its property development presence in Singapore.

"This includes the recently announced S$530 million en-bloc acquisition of the residential development known as Brookvale Park, which is located on a prime 999-year leasehold land in Clementi, Singapore.

"The proposed redevelopment on this site will be undertaken by another of Sunway's 30 per cent-owned joint-venture vehicle with Hoi Hup Realty and SC Wong Pte Ltd," it said.

Notwithstanding the disposal of the stake in HHSN, Sunway said it had retained an entire floor of medical suites in Royal Square at Novena with total floor area of some 8,500 square feet with the aim of establishing Sunway Medical's maiden presence in Singapore.

The medical centre was targeted to commence operations by end-2018, it said.

On another note, Sunway said Hoi Hup Sunway Sengkang Pte Ltd's S$658 million Rivercove Residences project launched on April 14, comprising 628 units of executive condominium units contained in ten 16-storey blocks, at Anchorvale Lane, Singapore was 98 per cent sold.

-- BERNAMA