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Sunway Property boosts presence in Singapore, disposes 30% stake in JV

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Sunway Developments (SDPL), a wholly-owned subsidiary of Sunway Holdings, is disposing 30% of its equity interest in Singapore-based real estate developer Hoi Hup Sunway Novena (HHSN) to Hoi Hup Realty (Hoi Hup) for SG$39.9 million.According to the Bursa filing, the proposed disposal will enable Sunway to monetise its investment in HHSN, which includes a hotel and unsold medical and retail units. The proceeds will be used for working capital (SG$0.4 million) and new land bank acquisitions (SG$39.5 million), including but not limited to residential development Brookvale Park.The filing said this can enable the company to generate a higher return on investment. The deal is expected to complete on 30 June 2018, barring any unforeseen circumstances. SDPL is incorporated in Singapore and focuses on investment holdings.HHSN was established as a joint venture company between SDPL (30%), Hoi Hup (60%), Hoi Hup J.V Development (7%) and Azuki Investments (3%) to undertake the development of the land awarded by the Urban Redevelopment Authority of Singapore for a 99-year lease term at SG$492.5 million.Named Royal Square at Novena, the project comprises hotel, medical units and retail units. It was completed on 12 July 2017 and approximately 70% of the medical and retail units have been sold. HHSN recorded accumulated profits of SG$132.5 million up to 31 December 2017 from Royal Square Novena and currently owns the hotel as an investment property.According to an article by the New Straits Times, Sunway has also kept an entire floor of medical suites in Royal Square at Novena, in a bid to expand Sunway Medical into Singapore. Scheduled to open by the end of this year, Sunway Medical Singapore is anticipated to be a collection of clinics with doctors in different specialisations and a wellness centre.

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