KUALA LUMPUR (Oct 2): Property developer Sunsuria Bhd said OCBC Bank (Malaysia) Bhd has granted an additional limit of RM120 million to its 51%-owned subsidiary Bangsar Hill Park Development Sdn Bhd (BHPDSB), bringing its total credit facilities to RM420.483 million.

Pursuant to the facilities, Sunsuria itself has provided financial assistance to BHPDSB in the form of a corporate guarantee — which is in proportion to the group’s 51% shareholding in BHPDSB.

The facilities are to part finance the development projects and for working capital of BHPDSB.

In a filing with Bursa Malaysia on Monday, Sunsuria said it had at an extraordinary general meeting (EGM) held in February 2021 obtained shareholders’ approval to provide financial assistance to BHPDSB of up to RM276.1 million, of which up to RM102.1 million in cash will be used for working capital requirements and up to RM174 million in the form of a corporate guarantee.

“Pursuant to the (OCBC Bank) facilities, Sunsuria will be providing further corporate guarantee of RM40.47 million in addition to the earlier mandate obtained at the EGM,” it added.

It is worth noting that the provision of financial assistance is a related party transaction as Sunsuria KL Sdn Bhd (SKLSB) owns 16% equity interest in BHPDSB and Suez Capital Sdn Bhd (Suez) owns another 29.63% equity interest in BHPDSB.

“Datuk Ter Leong Hing, brother of Sunsuria founder and executive chairman Tan Sri Ter Leong Yap, has no less than 20% equity interest in BHPDSB through Suez. (At the same time,) Leong Yap is the sole director and major shareholder of SKLSB, with a 75.3% stake in the company and his spouse Puan Sri Datin Kwan May Yuen owns the balance 24.7%,” said Sunsuria.

“The provision of financial assistance is not expected to have any material effects to the group’s earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholding,” said Sunsuria.

The provision of financial assistance is also not subject to approval by shareholders of Sunsuria or any relevant regulatory authorities.

Sunsuria shares ended down 2.5 sen or 4.46% to 53.5 sen per share on Monday, giving it a market capitalisation of RM479.3 million.