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Wednesday, August 24, 2011

Sunway allocates RM400m for overseas expansion

KUALA LUMPUR: Sunway Bhd, a property and construction group, has allocated some RM400 million for overseas expansion mainly in China, Singapore and India.

Chief financial officer, Chong Chang Choong said RM300 million has been set aside for the Tianjin Eco-City project in China while the rest will be for projects in Singapore and India.

The Tianjin Eco-City project has an estimated gross development value (GDV) of RM5 billion and is due to be launched in the middle of 2012. It will also be completed between five and seven years.

Shares of the group, a merger between Sunway City Bhd and Sunway Holdings Bhd, was relisted yesterday with an opening price of RM2.60 versus its reference price of RM2.80.

It closed 11 per cent or 31 sen down to RM2.49.

Chong said the group expects its overseas business to contribute about 30 per cent of total turnover in the next five years.

"Our core strength will still be in Malaysia. Any investment overseas especially in China will be more of an opportunistic point of view," he added.

Meanwhile founder and chairman, Tan Sri Dr Jeffrey Cheah said the group hopes to win jobs under the mass rapid transit (MRT) project. Sunway recently won a contract under the light rail transit (LRT) extension project.

"Just recently, we won the bidding for the LRT extension...As for MRT, we have very good experiences, very good track record. We worked very hard for it," he said.

The group will be one of the largest property-construction players in the region, with total assets of over RM7 billion and a land bank of close to 891 ha with a potential GDV of approximately RM23 billion.

By Business Times

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