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Naim plans RM2b 'mini KLCC' in Bintulu

KUALA LUMPUR (Oct 2): Diversified construction group Naim Holdings Bhd plans to develop a "mini KLCC" in Bintulu with a gross development value (GDV) of RM2 billion, according to Naim's executive director of corporate affairs Ricky Koh today (Tuesday).

"We are going to develop what we call as a mini KLCC in the old Bintulu airport, with shopping complex, condominiums, small office home office (SOHO) units and hotels.

"The development will be worth about RM2 billion in GDV, which we will undertake over a period of about 10 to 15 years to complete," said Koh at a luncheon talk, to update the group's projects in the Sarawak Corridor of Renewable Energy (Score).

Naim will kick-start the mini-KLCC project, tentatively called the Bintulu City Centre, with the launch of a shopping complex worth about RM400 million early next year.

The group will also build a residential development in Batu Lintang, Kuching, by the end of next year, with GDV of about RM100 million.

This means that properties to be launched next year by Naim will be worth about RM500 million in GDV.

In its construction division, Naim has about RM1.3 billion of contracts in hand, mostly for infrastructural works in Score.

Recently the group has also been awarded to construct elevated tracks for the Klang Valley Mass Rapid Transit (KVMRT) project, which signals the group's entry into the construction sector of this part of the Malaysian shore.

Koh said the group is still very much focused on Sarawak, where Naim is said to be the largest property developer by projects there.

In addition, the group is looking to inject its property developments worth RM3 billion over the next six to nine years into a real estate investment trust (REIT), which will be the first of its kind with assets based in the land of the hornbills.

"With the REIT, we will be able to earn recurring income from our properties, which will provide us with more sustainable earnings growth in the future. The REIT will also allow us to manage the tenant mix of our commercial property units to maintain the dynamic and vibrancy of the entire development," he said.

On its oil and gas division, whereby Naim is the single largest shareholder of Dayang Enterprise Holdings Bhd with a 33.6% stake, Koh said the group is looking to diversify its expertise in the sector into the construction of oil and gas related projects, as well as the engineering, procurement. construction and commissioning (EPCC) sector of the oil and gas industry.

Naim's financial results for the first half ended July 31, 2012 (1HFY12) showed a marked improvement over the same period last year, when it recorded RM49.7 million net profit, which exceeded the entire net profit of RM48.14 million recorded last year.

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