Sunway has secured a Surety Bond Facility of SGD200 million (approximately RM616.66 million) in aggregate from Berkshire Hathaway Specialty Insurance Company, Singapore Branch for its Singapore projects.
Owned by world-renown investor Warren Buffet, Berkshire will issue a qualifying certificate bond of SGD37.1 million (approximately RM114.39 million) i.e. 10% of the land price of the land at Yew Siang Road, Singapore acquired by Hoi Hup Sunway Kent Ridge Pte Ltd, an associated company of Sunway.
This is in favour of the Singapore Land Authority to guarantee the performance of HHSKR to complete the residential development on the land within 5 years from the date of purchase and to sell all residential units within 2 years after the issuance of a temporary occupancy permit for the housing project. This is actually in accordance with Singapore’s Residential Property Act which requires all foreign persons or companies to seek the prior approval of the land authority to acquire and retain restricted residential properties in the City-State.
The said project is for Flynn Park, a $371 million to a joint venture between Hoi Hup Realty and Sunway Developments. Located along Yew Siang Road off West Coast Highway, the site is located just 350m from the Pasir Panjang MRT station on the Circle Line. The site can be redeveloped into a new condominium of about 271 residential units. Based on the Urban Redevelopment Authority’s 2019 Master Plan, the site is zoned “residential” with a plot ratio of 1.4.
