Nadayu to launch RM1.3b worth of properties

KUALA LUMPUR: Nadayu Properties Bhd will launch three major property developments with a combined gross development value (GDV) of over RM1.3 billion within the next few months. The projects comprise mixed and residential developments in the Klang Valley, Selangor, and Penang. The new projects will keep the group busy over the next three years, according to Hamidon Abdullah, its group executive chairman.

The first project to be launched, as soon as next month, is Nadayu 28 in Bandar Sunway, Selangor. The project is a mixed residential development on a 2ha parcel with a total GDV of RM425 million.

Also to be launched in the Klang Valley, in 3Q11, is Nadayu Cyberjaya, a mixed residential development on a 6.5ha tract in Cyberjaya with a GDV of RM429 million.
By early next year, depending on the approval process, the group will also launch Nadayu 290 in Penang, a high-rise residential development with a GDV of RM476 million on a 3.2ha tract.

Hamidon: Nadayu in no hurry to acquire land.

“At the moment what we have ongoing is the Melawati flagship project. We have just finished our Dataran Prima development and we are in the very advanced stages of construction of our Nadayu 92 in Kajang [GDV of RM386 million],”  Hamidon told a news conference after the group’s EGM yesterday.

According to Alex Cheang, group executive director, Nadayu has a total landbank of about 365ha, including land held with joint venture partners. Of this, 73ha are located in the Klang Valley with the rest in Penang, mainly in Seberang Prai.  Only 6ha to 8ha of land is located on Penang island.

Cheang said the group’s landbank in Penang would last for eight to 10 years, depending on the flow of projects planned.

Nadayu was in the spotlight recently over the termination of the proposed sale of a piece of land in Jalan Sultan Ismail by UDA Holdings Bhd to the company for RM215.5 million. Uda said it could not obtain approval from the Ministry of Finance, its shareholder, to sell the land to Nadayu.

Hamidon said Nadayu will appeal to UDA’s board of directors and shareholders to proceed with the sale of the land. However, he reiterated that should the proposal not materialise, Nadayu has enough on its plate to keep it busy for the next three years, and will keep on looking for new opportunities along the way.

“Yes, we are disappointed by the termination as it would have [given] our company a different profile altogether, but there are reasons unknown to us why it didn’t happen,” he said, adding that after posting an appeal, the group will just take a wait-and-see stance, and accept the outcome of the appeal and move on.

On whether the group will seek another tract of prime land in the Klang Valley, Hamidon said Nadayu has the financial capability to fund the acquisition of new landbank, but is not in a hurry to acquire more land as it has enough land to last for the next eight to 10 years.

“We have a lot of opportunities to buy land, but having said that we have also got a lot of development land that is at the launching stage. So we are in no hurry,” he said.

During the EGM, shareholders approved the disposal of 213ha of land which forms part of the ongoing township development known as Bandar Tasek Mutiara in Penang by Pembangunan Bandar Mutiara Sdn Bhd (PBM), a wholly-owned subsidiary of Nadayu, to Palmington Sdn Bhd for a total cash consideration of RM233.2 million.

Nadayu owns a 40% stake in Palmington, which is 60% owned by Tambun Indah Land Bhd, another noted developer based in Penang. By virtue of the disposal to Palmington, Tambun Indah will lead the development of the land.

Nadayu’s shareholders also approved the proposed provision of financial assistance to Palmington of up to RM98.8 million to fund its portion of the latter’s capital needs.