Friday 29 Mar 2024
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KUALA LUMPUR (July 10): Naza TTDI Sdn Bhd, the property arm of diversified group Naza Corp Holdings Sdn Bhd, is looking at trimming its RM1.8 billion sales target for its financial year ending Dec 31, 2015 (FY15) due to weak property market sentiment.

Naza TTDI deputy executive chairman and group managing director SM Faliq SM Nasimuddin said the group’s revised sales target would not differ that much from its initial RM1.8 billion target.

“For us, FY15 will not be one of our best performing years as the takeup rate for some of our key developments has been moderate within 60% to 70%, as we are slightly effected by the slowdown in the property market.

“However, we are concentrating on projects that we know we can sell. That is why for this year we have only three new launches lined up,” he told reporters after the signing ceremony between Naza TTDI and Home Product Centre (Malaysia) Sdn Bhd (HomePro).

These new projects, which will be located in Tmn Tun Dr Ismail and Shah Alam, have a total gross development value (GDV) of approximately RM800 million.

“FY15 will be a very mild year for us, but it is usually at this time of the year where we regroup for our launches next year … we have lined up four to five launches for next year,” said Faliq.

The group currently has a landbank of close to 1,000 acres in Klang Valley and Penang, with GDV of approximately RM25 billion, to be developed within the next 10 to 12 years.

“It will be back to basics for us as we will be concentrating on building townships, seeing that there are too many high rise projects currently,” he added.

On the progress of the Matrade Centre, which is part of Naza TTDI’s RM20 billion KL Metropolis project in Jalan Duta, Kuala Lumpur, Faliq said the group has completed 60% of the centre.

“We are targeting to deliver the completed centre to the government by the third quarter of next year,” he said.

At the signing ceremony held earlier, Faliq and HomePro Malaysia’s managing director Anuchar Jitjaturunt executed a land lease agreement which would see HomePro, Thailand’s leading home improvement store, establishing its flagship store in Naza TTDI’s TTDI Gateway Development in Shah Alam.

The RM2.5 billion GDV TTDI Gateway project is a 38.8-acre development in Section 13, Shah Alam, that will be developed over three phases and will consist of offices, serviced apartments and retail components.

The lease covering a land size of 4.03 acres, will be over 32 years.

On whether the group has plans to list on Bursa Malaysia, Faliq said given the weak outlook for the property sector and the volatility in the stock market, the group has decided to put its listing plans on hold.

“Listing is still part of our plans, but we will look at it again moving forward [when market conditions improve],” he said.

The Naza Group has also been in the news of late as one of three outfits shortlisted for the role of project development partner in the proposed RM9 billion third rail transit line (LRT 3).

On this, Faliq said the group’s engineering arm had submitted its plans to the government.

“I can confirm that we have participated in the bid under Naza Engineering and Construction Sdn Bhd. We have submitted our proposal and we are waiting for the government’s response,” said Faliq.

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