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- Under the acquisition, Sunway will assume ownership of MCL Land and its subsidiaries, including ongoing development projects in Singapore and a portfolio of income-generating and development assets in Malaysia.
KUALA LUMPUR (Oct 24): Sunway Bhd (KL:SUNWAY) has secured a term loan facility of up to S$600 million (about RM1.95 billion) to fund its acquisition of Hongkong Land (MCL) Holdings Ltd (MCL Land).
In its filing to Bursa Malaysia on Thursday, Sunway said the term loan facility will raise its gross borrowings to RM12.78 billion from RM10.91 billion as of end-December 2024, while net borrowings are expected to rise to RM8.45 billion from RM6.57 billion.
Gross gearing is projected to climb to 0.80 times from 0.68 times, and net gearing to 0.53 times from 0.41 times. The group had cash and bank balances of RM4.34 billion as of end-December last year.
The facility was obtained by Sunway’s indirect wholly owned subsidiary Sunway Labuan Investment Ltd (SLIL) from United Overseas Bank Ltd, Labuan Branch; Oversea-Chinese Banking Corporation Ltd, Labuan Branch; and DBS Bank, according to Sunway’s bourse filing.
Last month, Sunway announced that it is buying MCL Land from Hongkong Land International Holdings Ltd for S$738.7 million (about RM2.4 billion). Under the acquisition, Sunway will assume ownership of MCL Land and its subsidiaries, including ongoing development projects in Singapore and a portfolio of income-generating and development assets in Malaysia.
MCL Land is a long-established developer with a track record of 48 residential projects completed since 1992. While it maintains a minor presence within Kuala Lumpur and Seremban, its core operations remain in Singapore.
Currently, MCL Land has ongoing projects in Singapore with a total gross development value of S$2.96 billion across five developments. In Malaysia, it owns Wangsa Walk Mall, a 350,000 sq ft property boasting a 99% occupancy rate.
The facility’s initial tenure begins from the date of first drawdown and ends either one year later or on Dec 31, 2026, whichever comes first.
Subject to unanimous agreement by the lenders, the initial tenure may be extended by up to two years. SLIL is required to repay the facility in full in a lump sum on the final repayment date.
As Penang girds itself towards the last lap of its Penang2030 vision, check out how the residential segment is keeping pace in EdgeProp’s special report: PENANG Investing Towards 2030.
