Sunway Bhd’s shares traded unchanged at RM5.19 as of the time of writing as investors digested news of the group’s latest expansion into Singapore’s property market through a RM2.4 billion residential development project.
The stock traded flat from its previous close after trading between RM5.16 and RM5.24 during the session. A total of 38.25 million shares changed hands.
The muted share price movement came a day after Sunway announced that it had secured a prime land parcel at River Valley Green in Singapore through a joint tender with CSC Land Group (Singapore) Pte Ltd.
The Urban Redevelopment Authority of Singapore awarded the 11,516 sq m site on June 23 under a 99-year leasehold tenure. The proposed residential development carries a gross development value of S$750.57 million, equivalent to approximately RM2.4 billion.
The project will be undertaken through a joint venture company to be established by Sunway’s indirect wholly owned subsidiary, SMCL Haven 3 Pte Ltd, and CSC Land Group (Singapore). Sunway will hold a 60% stake in the venture while CSC will own the remaining 40%.
According to the group, the development is expected to contribute positively to earnings from the financial year ending Dec 31, 2029 onwards.
The acquisition further strengthens Sunway’s presence in Singapore’s residential property sector and forms part of its broader regional growth strategy. The group noted that while the project is exposed to normal property development risks such as fluctuations in construction costs, interest rates and market conditions, these are mitigated by the experience and track records of both development partners.
