Sunway JV wins RM2bil Singapore residential job
PETALING JAYA: Sunway Bhd and its Singapore-based joint venture (JV) partner, Sing Holdings Residential Pte Ltd (SHRPL), have secured a residential development project worth RM2.33bil in Chuan Grove, Singapore.
In a filing with Bursa Malaysia, Sunway said the Urban Redevelopment Authority of Singapore had awarded a parcel of land measuring approximately 15,831.5 sq m at Chuan Grove for a 99-year lease term for a residential development at S$703.6mil (RM2.33bil) to SHRPL and Sunway Developments Pte Ltd (SDPL) following a successful tender for the land.
'SHRPL and SDPL will incorporate a JV company, in which SHRPL and SDPL will have equity interest in the proportion of 65:35 at a later date, to undertake the development of the land,' it said.
SDPL is a wholly owned subsidiary of Sunway Holdings Sdn Bhd, which in turn is a wholly owned subsidiary of Sunway.
Sunway said the proposed project is expected to contribute positively to the earnings of Sunway Group from the financial year ending Dec 31, 2026 (FY26) onwards.
'The proposed project is subject to usual property development and construction related risk, including fluctuations in the raw material prices, interest rate movements and gyrations in the property cycle.
'However, these risks could be mitigated by SHRPL and SDPL's experience and track record in property development.'
According to Hong Leong Investment Bank (HLIB) Research in an earlier report, the government land sale tender for a residential site at Chuan Grove in Singapore closed on July 8, attracting seven bids.
'This project marks the first collaboration between Sunway and SHRPL in Singapore's property market,' it noted.
HLIB Research said the successful launch of Chuan Park underscored the robust demand for quality residential projects in this locality, enhancing the market confidence and feasibility of the upcoming Chuan Grove development.
'Sunway is accelerating its project development in Singapore with the collaboration with a new partner, apart from its long-time partner Hoi-Hup. This current Chuan Grove site should help to replenish the project pipeline in the private residential space.'
It said Sunway currently had five ongoing and pipeline projects in Singapore, namely, The Continuum (launched in 2023), Terra Hills (launched in 2023), Tampines site (slated to launch in the first half of 2026), Novo Place (launched in November 2024) and Otto place.
HLIB Research said the net profit margin of a private residential project ranges from low-to-mid teens.
'Thus, based on our estimated effective gross development value of RM1.62bil, assuming a 10% net margin, four-year recognition timeline, the share of profit per annum is estimated to be around RM40.4mil, likely to be recognised over FY27 to FY30.'
With the group's widening exposure, it said Sunway provides a good proxy to the domestic economy, which is currently entering a new phase of growth.
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