The Board of Directors of SunCon is pleased to announce that Sunway Construction Sdn Bhd (“SCSB”) has today, accepted two Letters of Award in respect of the following projects:-

(a) Letter of Award issued by Sunway Velocity Two Sdn Bhd (“SVTSB”), an indirect subsidiary of Sunway Berhad (“Sunway”) which in turn is a major shareholder of SunCon, in respect of the Main Building and Associated External Works for the Proposed Commercial Development of Sunway Velocity Two – Plot B Project which comprises the following:

(i) Phase 2A - 2 storeys of Business Premises, 8 storeys of Podium Carpark and 1 storey of Basement Carpark;

(ii) Phase 2B - 39 storeys of Serviced Apartment (Block C); and

(iii) Phase 2C - 39 storeys of Serviced Apartment (Block D)

on the land held under Lot No. 20056, Jalan Peel, Seksyen 90, Bandar Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur for a total contract sum of RM253,564,920.72 (“V2 Project”).

The V2 Project shall commence in November 2020 and is expected to be completed in September 2023; and

(b) Letter of Award issued by Sunway Medical Centre Sdn Bhd (“SMCSB”), an indirect subsidiary of Sunway, in respect of the Main Building Works for the Proposed Development of Sunway Medical Centre – Phase 4 Project which comprises the following:

(i) Phase 4A: 2 blocks of Medical Centres with 15 storeys and 10 storeys each; and 1 block of 9 storeys of Elevated Carpark on part of the land held under Lot No. 1356 (HSD 308674) and Lot No. 1368 (HSD 320686);

(ii) Phase 4B: 1 block of a 16-storey Hotel Suite on part of the land held under Lot No. 1356 (HSD 308674); and

(iii) Phase 4C: 1 block of a 9-storey Private Medical Centre

on the land held under Lot No. 1368 (HSD 320686), Jalan Lagoon Selatan, Bandar Sunway, Mukim Damansara, Daerah Petaling, Selangor Darul Ehsan for a total contract sum of RM612,305,000.00 (“SMC4 Project”). Out of the total contract sum, RM450.0 million had been accounted for in the existing order book of SunCon as SCSB has commenced works on the SMC4 Project upon the receipt of the Letter of Intent dated 1 June 2018 issued by SMCSB.

The SMC4 Project had commenced in August 2018 and is expected to be completed in August 2022.  

The V2 Project and SMC4 Project (collectively referred to as the “Projects”) are expected to contribute positively to the earnings of SunCon Group from the financial year ending 31 December 2020 onwards.

The Projects are subject to normal construction risk of materials price fluctuation. However, with the past experiences and expertise of SCSB in construction projects, this risk could be mitigated.

The Projects are considered as related party transactions by virtue of Evan Cheah Yean Shin being a Director and major shareholder of SunCon as well as director of several subsidiaries and major shareholder of Sunway. Tan Sri Dato’ Seri Dr Jeffrey Cheah Fook Ling, Puan Sri Datin Seri (Dr) Susan Cheah Seok Cheng, Sarena Cheah Yean Tih, Adrian Cheah Yean Sun, Sungei Way Corporation Sdn Bhd and Active Equity Sdn Bhd are major shareholders of both SunCon and Sunway as well as person connected to Evan Cheah Yean Shin. Tan Sri Dato’ (Dr) Chew Chee Kin is a Director of both SunCon and Sunway.

SunCon has obtained its shareholders’ mandate for such recurrent related party transactions entered into or to be entered into by SunCon and its subsidiaries with Sunway and its group of companies at its Annual General Meeting held on 5 August 2020.

The total new projects secured by SunCon Group this year including the abovementioned Projects amounted to RM1.983 billion.

This announcement is dated 30 September 2020.