KUALA LUMPUR: Electrical home appliance maker Khind Holdings Bhd is planning a mixed-use project on a 65,340 sq ft piece of land in Setia Alam, Shah Alam, Selangor, as it diversifies into property development, construction and property investment.

The project will have a gross development value of RM150 million, with total estimated development costs of RM112.5 million.

In a filing with Bursa Malaysia yesterday, Khind (fundamental: 1; valuation: 2.4) said it plans to fund the construction cost of the planned development via a combination of bank borrowings, progressive sales billings and internal funds.

Khind said the development is expected to result in a diversion of 25% or more of its net assets to an operation that differs from its current one, but should contribute 25% or more to its net profit.

Before that, it will seek shareholders’ approval for the proposed diversification at an extraordinary general meeting to be convened.

Khind said the development will feature an office building — partly for its own use and partly to be rented out — and a retail component with serviced apartments.

“The details of the planned development, including the specifications of the development components or the group’s plans to retain, sell or rent out the components, may be subject to change, depending on the prevailing economic condition as well as regulatory considerations,” it added. However, it intends to launch the serviced apartments first to commence generating cash flow from the progressive sales billings.

Khind said the construction of the planned development is expected to start by the first quarter of 2016, after getting relevant regulatory and shareholders’ approvals.

The project is expected to be completed in 36 months.

This article first appeared in The Edge Financial Daily, on July 24, 2015.