KUALA LUMPUR: Bertam Alliance Bhd — which saw changes in its boardroom and shareholding after Brem Holdings Bhd disposed of its 32.89% stake in July this year — will be kick-starting its property development projects worth in excess of RM1 billion in gross development value (GDV) next year.

Its newly appointed managing director (MD) Andrew Lim Nyuk Foh said the firm will launch two residential projects next year.

They are the 2.75-acre (1.1ha) Taman Luyang development in Kota Kinabalu, Sabah, with a GDV of RM300 million and a 10.47-acre Cheras project, which will have a GDV of over RM1 billion.

“Luyang marks our first project in Sabah. It will consist of 220 units of serviced apartments,” said Lim, who is also founder and MD of Priceworth International Bhd.

Bertam had purchased the Luyang land on Aug 13 this year for RM41.5 million from Damaipuri Property Sdn Bhd, where Lim is a director and shareholder. This was before Lim succeeded Tan Ai Tong as Bertam MD on Oct 17.

“We will likely launch our Cheras project in the second half of next year. The project, which is in the final stages of [development] approval, is located next to ‘You City’ and will feature 2,000 units of serviced apartments,” Lim told reporters after the group’s extraordinary general meeting (EGM) yesterday.

The project is expected to take about three to five years to complete. The Cheras land has a net book value (NBV) of RM32.8 million and was last revalued in August 2011, based on Bertam’s latest annual report.

Lim said the group sees a lot of potential in Sabah and intends to expand “aggressively” there.

“We hope to be a proxy for Sabah’s development and growth, and hope that investors will look at us as a way to go into Sabah,” said Lim.

On Oct 13, Bertam had purchased three parcels of land together with a brick factory and a 2-storey building erected on  33.015 acres of land in Tuaran, Sabah, for RM43 million.

Lim said this has been earmarked for an affordable housing project, but declined to disclose the pricing and GDV details as the project is in the “planning” stage.

Earlier at the EGM, Bertam shareholders approved its disposal of eight parcels of land in Johor for RM63 million.

The disposal, which is expected to realise RM9.6 million in net gain after deducting the land’s NBV and estimated expenses, will boost Bertam’s cash position, enabling it to complete the Luyang and Cheras projects in stipulated time.

Lim said Bertam is looking to buy more land, particularly in the Klang Valley and Sabah.

In the immediate term, Lim said its two build-then-sell projects in Batu Tiga and Kota Damansara will be able to rake in RM50 million in turnover, most of which will be recognised in its financial year ending Dec 31, 2015.

As at Sept 30, 2014, Bertam’s net cash stood at RM7.85 million, after deducting total borrowings of RM26.7 million.

Its net profit for the third quarter ended Sept 30, 2014, fell drastically to RM108,000 from RM1.5 million a year ago, while revenue dipped to RM8.4 million from RM11.5 million.

This article first appeared in The Edge Financial Daily, on November 27, 2014.