WMG completes RTO, set to launch RM1.3 bil new projects in the next few years

WMG completes RTO, set to launch RM1.3 bil new projects in the next few years
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KUALA LUMPUR (July 31): Sabah-based property developer WMG Holdings Bhd (WMG) is looking to launch RM1.3 billion new projects after its listing on the Main Market of Bursa Malaysia via a reverse take-over (RTO) of Tekala Corporation Berhad (Tekala) here today. 

“The listing is timely for us to not only allow us to tap into the capital market for future land banking opportunities, but also raise our corporate profile, as we plan to undertake approximately RM1.3 billion worth of pipeline projects,” said group managing director Quek Siew Hau. 

The listing completes the RTO process that was reported to be initiated in December 2015. The corporate exercise saw the exchange of 100 Tekala ordinary shares for 133 new WMG ordinary shares. 

Without specifying a timeframe, Quek said WMG plans to launch more than RM1.3 billion worth of new projects on its existing 44.12 acres of land in Sabah, comprising both residential and commercial properties. 

The projects are said to be financed by internally-generated funds and bank borrowings, according to Quek. 

Currently, WMG has a total undeveloped land bank of approximately 620 acres, of which 442 acres are in Sandakan and the remaining 178 acres are in Kota Kinabalu. 

At present, the company’s projects include Sejati Walk, which is a shopping mall with 343 shopping units and a commercial centre; Sri Indah Kondominium which are four blocks of 11-storey condominium totalling 480 units; and a Mydin Hypermarket — all under construction in Sandakan. 

For financial year ended Dec 31, 2016, WMG recorded a revenue of RM95.1 million in which the property development segment contributed 79% and the remaining 21% was from the sale of building materials.  

Its chairman Datuk Eric Usip Juin hoped the listing will further strengthen the company’s leading position in the property market in Sabah, by not only increasing its land bank, but also launching more projects in the near future. 

“The prospects of the property market in Sabah remain positive and we are confident of maintaining our leading position in the state. 

“The case in point is the upcoming infrastructure development of the Pan Borneo Highway, which passes through Sandakan and Kota Kinabalu. The 2,082 kilometre highway, alongside ongoing initiatives under the Sabah Development Corridor Blueprint and the current tourism boom, would surely be significant catalysts for the economic development and urbanisation of the state,” Datuk Eric added.   

At 11.10am, Tekala fell 2.08% or 1 sen to 47 sen with 154,100 shares traded.