Ireka expects returns from Aseana investment this year

KUALA LUMPUR (April 24): Aseana Properties Ltd, a London-listed property developer which is 23%-owned by Malaysian developer Ireka Corp Bhd, plans to sell some of its property assets and return the capital to shareholders this year, Ireka group managing director Lai Voon Hon (pictured) said in The Edge Financial Daily today.

However, the proposal is pending the approval from Aseana’s shareholders at their upcoming extraordinary general meeting (EGM) in June, he added.

Lai said shareholders have been told that the process is still on-going and that more details will be announced in the next few months.

Ireka’s investment in Aseana was worth RM230 million.

At an earlier EGM, Ireka’s shareholders approved the group’s disposal of a 8.45ha piece of freehold land in Senawang, Negri Sembilan to Aeon Co (M) Bhd for RM53.66 million.

Among the projects that are being managed by Aseana are Seni Mont’Kiara, Tiffani by i-Zen, 1 Mont’Kiara offices and retail mall, Four Points by Sheraton Sandakan Hotel and Aloft Kuala Lumpur Sentral Hotel.

The group currently derives 85% of its revenue from its construction division and the rest from its property business.

Lai highlighted that Ireka will focus on expanding its property segment going forward.

He said that the group will launch two projects this year which have a combined gross development value of RM380 million.

Lai added that Ireka also has RM2 billion worth of projects in the pipeline.

Meanwhile, the group has no plans to bid for overseas projects in the next one to two years, he said.

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