SUNWAY Bhd's Singapore-based subsidiary, Sunway Developments Pte Ltd (SDPL), together with two companies from the island republic, has been awarded a land parcel in Mount Sophia by the Urban Redevelopment Authority of Singapore last Thursday.
The award is for 99-year lease term worth S$442.3 million (RM1.13 billion).
The two Singaporean companies are Hoi Hup Realty Pte Ltd and SC Wong Holdings Pte Ltd.
SDPL had entered into a three-way joint-venture deal with Hoi Hup and SC Wong that resulted in a joint-venture company, Hoi Hup Sunway Mount Sophia Pte Ltd, Sunway told Bursa Malaysia yesterday.
Formed on a 51:30:19 equity ratio, the joint-venture company plans to undertake a residential development on the piece of land.
Hoi Hup Sunway Mount Sophia, incorporated in Singapore with a paid-up capital of S$1 million, will have real estate development as its main activity.
The proposed real estate development on that piece of land called Land Parcel 875 is expected to see completion in 60 months.
This is set to contribute positively to the earnings of the Sunway group from the financial year ending December 31 2015 onwards, the group said.
In its filing with Bursa Malaysia, Sunway said SDPL is a wholly-owned subsidiary of Sunway Construction Sdn Bhd. It is, in turn, a wholly-owned subsidiary of Sunway Holdings Sdn Bhd, which is a wholly-owned subsidiary of Sunway.
The company added that Hoi Hup is a company incorporated in Singapore with a paid-up capital of S$3 million and main activity in real estate development.
SC Wong, meanwhile, has a paid-up capital of S$15 million and is involved mainly in investment holding.