KUALA LUMPUR (March 17): Sunway Bhd announced that the company has secured a surety bond facility of S$200 million (approximately RM616.66 million) in aggregate from Berkshire Hathaway Specialty Insurance Company in relation with a residential development housing project in Singapore.
Sunway said Berkshire through its branch in Singapore will issue a qualifying certificate bond of S$37.1 million (approximately RM114.39 million) that is 10% of the price of the land in Yew Siang Road, Singapore acquired by Hoi Hup Sunway Kent Ridge Pte Ltd (HHSKR), an associate company of Sunway, in favour of Singapore Land Authority (LDAU).
This, Sunway noted in a filing with Bursa Malaysia, is to guarantee the performance of HHSKR to complete the residential development on the land within five years from the date of purchase and to sell all residential units within two years after the issuance of temporary occupancy permit for the housing project.
"This is in accordance with the Residential Property Act of Singapore which requires all foreign persons (including all companies) to seek the prior approval of LDAU to acquire and retain restricted residential properties in Singapore.
"Thereafter, issuance of performance bond(s) of up to 10% of the land price in future application(s) to LDAU for future property development(s) of its joint venture company(ies) in Singapore in accordance with the requirements of LDAU," it said in the filing.
Sunway's share price settled for the day unchanged at RM1.67, bringing a market capitalisation of RM8.16 billion.
Edited by Kathy Fong
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