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Dijaya and Ivory to undertake property JV?

PETALING JAYA (Nov 11): Dijaya Corp Bhd and Ivory Properties Group Bhd have asked for a one-day suspension in trading of their shares on Friday pending a material announcement. There is market speculation that the two developers could tie up to undertake a major property project on Penang island, where Ivory Properties is one of the most prominent developers.

These expectations were foreshadowed when the two companies established a shell joint-venture company on Oct 14, called Tropicana Ivory Sdn Bhd, which is 51% owned by Ivory Properties and 49% by Dijaya.

Market observers say a joint venture with Ivory Properties will enable Dijaya to gain a strong foothold in Penang. It is also set to launch freehold townships in Cheras and Balakong or Kajang this year, with a combined GDV of over RM500 million.The landbank of about 66 acres in Kajang and 28 acres in Cheras were acquired at RM16 to RM17 psf in 2007 and 2008 as agricultural land and have been converted for residential use.

In an interview with The Edge weekly in June, founder and CEO Tan Sri Danny Tan said he wanted to grow Dijaya into a RM2 billion to RM3 billion company in terms of market capitalisation, from RM500 million then. Despite the market turmoil since then, its market capitalisation has increased to RM635 million as at on Thursday.

Ivory Properties, listed in the middle of last year, has completed a number of quality Penang projects, including The View Twin Towers in Batu Uban; Tanjung Park and Seri Taman Tanjung in Tanjung Tokong; Plaza Ivory and Palace Hill in Bukit Gambir and Penang Times Square.

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