KUALA LUMPUR: Prokhas Sdn Bhd aims to collect a total of RM3.57 billion cash by the end of this year via the realisation of all residual assets under its management, the company said yesterday.

To date, it has collected RM2.92 billion cash on behalf of Pengurusan Danaharta Nasional Bhd and expects to collect another RM650 million by year-end.

“The goal here is to convert all residual assets into cash and to maximise recovery as much as possible,” said Prokhas’ managing director Fazlur Rahman Ebrahim.

Prokhas, a wholly owned company of Minister of Finance, Incorporated, took over the management of all Danaharta’s residual assets and continued with the tender exercises that the former asset management company had carried out during its lifespan.

Prokhas head of property department Muhammad Solleh Ramli said more than 350 tender packages were sold to potential buyers and real estate agents during the ongoing tender process between April 5 and May 4.

The tender exercise involves 114 properties including residential, retail, office, industrial, development, agricultural and commercial properties.

Apart from the tender exercise, Prokhas also conducted structured sales via three auction exercises in Kuala Lumpur, Penang and Johor Bahru.

“The auction in Penang is very successful where 17 out of 19 properties were sold to the successful bidders and this is actually beyond our expectation,” Muhammad Solleh said.

“Although the auction in Johor did not receive a very good response where many properties still remained unsold, Prokhas has always been proactive and aggressive in delivering its task.

“Though some of our properties are abandoned and not prime properties as they are situated in less strategic locations, our structured sale makes a good bargain for buyers with vision to convert those properties into something which can bring more profit in the future,” he added.

The company plans to have another two structured sale exercises throughout the year and more in 2011.

This article appeared in The Edge Financial Daily, April 29, 2010.