Nadayu to launch projects worth more than RM1 billion in coming months

KUALA LUMPUR: Nadayu Properties Bhd, a medium-sized property developer, aims to achieve sales of at least RM300 million next year, on the back of its upcoming property launches in the Klang Valley, Selangor and Penang, said executive chairman Hamidon Abdullah.

The Main Market-listed company is launching three new property developments — Nadayu 28 in Bandar Sunway (RM425 million gross development value), Nadayu 99 Cyberjaya (RM447 million GDV) and Nadayu 290 in Penang (RM476 million GDV) — with a combined GDV of some RM1.35 billion within the next few months, said Hamidon.

"[The sales target for 2012] can go higher," he said after the company EGM on Monday. He added  that Nadayu is looking to achieve sales of some RM250 million this year based on its ongoing property projects.

Formerly known as Mutiara Goodyear Development, Nadayu's current property projects include Nadayu Melawati and Nadayu 92, Kajang, with a combined GDV of some RM1.55 billion.

With its upcoming three property launches, Nadayu would have projects with a total GDV of some RM2.9 billion spanning a land area of 178 acres that will keep the company busy over the next three years.

Nadayu obtained shareholders' approval on Monday to dispose of three office lots with a total floor area of 2,295 sq ft at Dataran Prima, an office lot with a built-up of 775 sq ft at Menara Prima and the accompanying 3,087 parking bays to Park Access Sdn Bhd for RM42.6 million cash.

The disposal consideration represents a discount of some 7.7% to the market value of the properties and the company is expected to incur a consolidated net loss after tax on disposal of RM1.61 million after the sale is completed next year.

The properties have to date contributed some 75.91% to Nadayu's latest audited profit after tax for FY10 ended Dec 31 of some RM1.13 million, according to Nadayu's EGM circular.

"We are selling it at some 7% below the market valuation because part of the parking space has no occupancy. It is new and it will take up to four years before the occupancy rate may go up to 60%," said executive director Cheang Chee Leong.

He added that the proposed disposal is in line with Nadayu's strategy to focus on its property development business and realise its investment in the properties that are deemed to be non-core assets.

Hamidon said the proposed disposal will provide an opportunity for Nadayu to improve its cash liquidity and gearing levels.

According to the company's EGM circular, it proposes to use RM27.1 million from the sale proceeds to lower its gearing from 0.66 times as at Dec 31, 2010 to 0.57 times after the disposal is completed next year. The rest of the sales proceeds will mainly be used for working capital.

"Also, we can continue to look for more land to acquire," Hamidon said. "We will be looking at areas near our existing landbank so we can have large tracts of land and we can focus very well," he said.