SunCon receives RM253m refurbishment contract from Sunway REIT

• SunCon said the project is expected to contribute positively to the earnings of the group for the financial year ending Dec 31, 2023 onwards.

KUALA LUMPUR (July 4): Sunway Construction Group Bhd (SunCon) has received a RM253 million contract from Sunway Real Estate Investment Trust (Sunway REIT) for the main building works for the refurbishment of a shopping complex and commercial centre in Seberang Perai Tengah, Penang.

In a Bursa Malaysia filing on Monday (July 3), SunCon said its wholly owned subsidiary Sunway Construction Sdn Bhd accepted the letter of award from Sunway REIT.

“The project is for a period of 24 months from the date of commencement of July 1, 2023, and is expected to be completed by June 30, 2025,” it said.

The project is deemed a related party transaction by virtue of Sunway Bhd, and its founder Tan Sri Jeffrey Cheah and his family being SunCon's major shareholders and Sunway REIT's major unitholders.

Cheah is SunCon’s largest shareholder with a direct stake of 0.61% and an indirect stake of 64.65% via Active Equity Sdn Bhd, Sungei Way Corp Sdn Bhd, Sunway Holdings Sdn Bhd, and children.

SunCon noted that it obtained its non-interested shareholders’ mandate for such recurrent related party transactions entered by SunCon and Sunway REIT at its annual general meeting on June 19.

SunCon said the project is expected to contribute positively to the earnings of the group for the financial year ending Dec 31, 2023 (FY2023) onwards.

Including this latest contract, SunCon said total new projects secured this year amount to RM1.53 billion.