Singapore: Sunway Bhd's indirect wholly-owned subsidiary, SMCL Haven 3 Pte Ltd (SMCLH3), has secured a SGD750.57 million (RM2.4 billion) residential development site at River Valley Green, Singapore, through a joint bid with CSC Land Group (Singapore) Pte Ltd. CSC is a Singapore-incorporated company principally involved in real estate development.

According to BERNAMA News Agency, the Urban Redevelopment Authority of Singapore awarded the 1.15-hectare land parcel, which carries a 99-year lease term, to SMCLH3 and CSC following a successful tender. SMCLH3 and CSC will incorporate a joint venture (JV) company to undertake the development.

"SMCLH3 and CSC will incorporate a JV company -- in which SMCLH3 and CSC shall have equity interest in the proportion of 60:40 -- at a later date to undertake the development of the land, subject to regulatory approvals," Sunway stated. The proposed project is expected to contribute positively to its earnings from the financial year ending December 31, 2029, onwards.

Sunway noted potential risks associated with the project, such as property development and construction-related risks, including fluctuations in raw materials prices, interest rate movements, and changes in the property cycle. Sunway Group and CSC's experience and track record in property development are expected to mitigate these risks.