Its financing plan is alternative option if buyers can’t get loans
PETALING JAYA: Sunway Bhd is not trying to take over the role of a bank, says Sarena Cheah regarding the group’s unique home ownership campaign.
Its managing director, property development division for Malaysia and Singapore, said this came as the group was offering up to 88% financing for home buyers under the Sunway Property Certainty Campaign, which included a guaranteed loan upon project completion, deferred payment and a voluntary exit plan.
“We are definitely not trying to be a bank because we are not in the business. We are lending you a helping hand rather than giving you a scheme,” she told StarBiz yesterday.
Under the newly-introduced scheme that runs until Sept 30 this year, buyers are given the option to apply for loans from commercial banks or from Sunway.
She said that the guaranteed loan was offered on a limited, first-come first-served basis for Sunway’s new residential launches.
Home buyers or investors can apply for the financial assistance where loans will be for a fixed tenure of 15 years, with a fixed interest rate.
Its new launches for the central region include 420 condominium units in Sunway Geo Residences 3, 288 condominium units at Brook Residences, Mont Kiara, and 259 units of serviced apartments at Sunway Gandaria, Bangi.
It is part of the group’s plan to launch properties with a gross development value (GDV) of RM1.6bil in the Klang Valley, Iskandar Malaysia, Ipoh and Penang.
Currently, Sunway has a land bank of 3,304 acres, with a total GDV of RM47.7bil and a development period of up to 15 years.
Sunway is not the first property developer that has come up with such an arrangement, as Eco World Development Group Bhd has also planned to offer business grants to buyers of its commercial property in the Klang Valley, Penang and Iskandar Malaysia this year.
She explained that it was an alternative option if the buyers were unable to get financing from banks. “We are not giving it to everybody. It serves as a safety net if you can’t get a loan for whatever reason. At that point in time, when you can’t get a loan, that’s where we will come in,” she added.
However, she explained that buyers would likely prefer commercial loans because they were cheaper and better. “Ours is more expensive. So, we’re not here to compete with the banks,” she said, adding that money for the loans was from the financial arm under Sunway.
Cheah had mentioned previously that the group could afford to give out loans.
“It is actually very palatable for us overall. The balance sheet of the developer is very important.
“Today, the group is very comfortable and strong, and we know what to look out for and what we can or cannot do. We have had a financing arm in the group for many years,” she said.
Under the campaign, home buyers can pay an initial downpayment of as low as 3%, where buyers can pay the remaining amount after a period of 12 or 24 months.
“We also have put in place the option for purchasers to terminate their sale and purchase agreement if they lose their jobs,” she said.